A new product introduced by Sunbound Promotions carries a two-year warranty against defects. The estimated warranty costs related to dollar sales are as follows:

Year of sale .............................. 3 percent

Year after sale ........................... 5percent

Sales and actual warranty expe

2013 $ 800,000 $18,000

2014 1,000,000 70,000

What amount should Sunbound report as its estimated liability as of December 31, 2014?