Cupola Awning Corporation introduced a new line of commercial awnings in 2016 that carry a two-year warranty against manufacturer's defects. Based on their experience with previous product introductions, warranty costs are expected to approximate 4% of sales. Sales and actual warranty expenditures for the first year of selling the product were: Sales $166,483 Actual Warranty Expenditures $2,170 What amount should Cupola report as a liability at December 31, 2016?________________