At the beginning of $2024,$ Tally Corporation began offering a $1-$year warranty on its products. The warranty is expected to cost $3\%$ of net sales. Net sales in $2024$ were $$320$ million. Five percent of the units sold were returned in $2024$ and repaired or replaced at a cost of $$8\mathrm{.}2$ million. What amount of warranty expense should be reported in the company's $2024$ income statement?