Alany Inc. commenced operations in 2019 and sold items for $500,000 during the year. The items came with two-year warranties. $4,000 of warranty work was performed in 2019. If warranty expense is estimated at 2% of sales revenue, what is the amount reported as Estimated Warranty Liability on the statement of financial position at December 31, 2019?*

2 points

a. $4,000

b. $6,000

c. $10,000

d. $3,000