Crane Company includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Crane $3 each. Crane estimates that 50 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows:

		2020		2021
Bags of dog food sold		480000		580000
Leashes purchased		16000		20000
Coupons redeemed		100000		130000

The premium liability at December 31, 2021 is

$52500.

$112500.

$60000.

$30000.