During 2019, Vaughn Manufacturing introduced a new line of machines that carry a three-year warranty against manufacturers defects. Based on industry experience, warranty costs are estimated at 1% of sales in the year of sale, 2% in the year after sale, and 3% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: Sales Actual Warranty Expenditures 2019 $1395000 $28000 2020 990000 38000 2021 1395000 92000 $3780000 $158000 What amount should Vaughn report as a liability at December 31, 2021?