During 2015, Blevert Co. introduced a new line of machines that cary a three-year osts are estimated at 2% of sales in the year of sale, 3% in the year after sale, and 5% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: 2015 2016 2017 $200,000 1,500,000 2,000,000 $3,700,000 $6,000 25,000 105,000 136,000 What amount should Blevert report as a liability at December 31, 2017? O A. $234,000 O B. $200,000 O C. $370,000 O D. $265,000