Adams, Inc. sells widgets that come with an unconditional five$-$year warranty.

According to Adams' best estimates, $7\mathrm{.}8\%$ of all units sold will require repair or

replacement under that warranty, and the average cost of honoring one

warranty claim is $$60.$

During $2023,$ Adams' first year of operations, $176,000$ widgets were sold,

$1,278$ of which were repaired or replaced under warranty claims.

On its December $31,2023$ balance sheet, what amount of warranty liability will

Adams report?