Carpenter Inc. had a balance of $82,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Carpenter's warranty expenditures paid were $447,000. Its warranty expense is calculated as 1% of sales. Sales in 2021 were $40.2 million. What was the balance in the warranty liability account as of December 31, 2021?

Multiple Choice

• $125,400.

• $37,000.

• $484,000.

• $434,200.