During 2019, Waterway Industries 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 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 $1398000 $26000 2020 1007000 40000 2021 1398000 92000 $3803000 $158000 What amount should Waterway report as a liability at December 31, 2021? $0 O $34420 O $13980 O $70180 Concord Newspapers sold 6700 of annual subscriptions at $150 each on June 1. How much unearned revenue will acist as of December 312 O $502500. $0. O $1005000, $418750