Concord Ltd$.$ manufactures a line of amplifiers that carry a three$-$year warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows: first year after sale$2\%$ of sales; second year after sale$4\%$ of sales; and third year after sale$5\%$ of sales. Sales and actual warranty expenditures for the first three years of business were:

Sales

Warranty

Expenditures

$2021$

$$750,000$ $$15,900$

$2022$

$1,010,00046,000$

$2023$

$1,017,00080,000$

$($a$)$ Calculate the amount that Concord should report as warranty expense on its $2023$ income statement and as a warranty liability on its December $31,2023$ SFP using the assurance$-$type warranty $($expense$-$based approach$).$ Assume that all sales are made evenly throughout each year and that warranty expenditures are also evenly spaced according to the rates above.

Warranty expense

Warranty liability