During 2019, Crane Company 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, 3% in the year after sale, and 4% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: (assume the accrual method) Sales Actual Warranty Expenditures 2019 $1597000 $38000 2020 2500000 64000 2021 2102000 135000 $6199000 $237000 What amount should Crane report as a liability at December 31, 2021? $71120 $320910 $84080 $0