During 2020, Dirk Company introduced a new product carrying a two-year warranty against defects. The estimated warranty cost related to peso sales are 4% within 12 months following sale and 6% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31 , 2020 and 2021 are as follows: On December 31,2021 , what would be reported as estimated warranty liability? a. 400,000 c. 7240,000 b. 360,000 d. 50,000