During 2006, Younger Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on Industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4%. in the year after sale, and 6% In the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: Sales Actual Warranty Expenditures 2006 600,000 9,000 2007 1, 500,000 45,000 2008 2, 100.000 135,000 4, 200,000 189,000 What amount should Younger report as a liability at December 31, 2008? $0 $15,000 $204,000 $315,000