E10.12 (LO 2) AP Silver Cloud manufactures and sells computers for $2,000 each, with a two-year part and labour warranty. Based on prior experience, the company expects, on average, to incur warranty costs equal to 5% of sales. The business reports the following sales and warranty cost information: Sales (units) 2022 500 2023 600 2024 525 Actual Warranty Costs $30,000 46,000 53,500 Instructions a. Calculate the warranty expense for each year. b. Calculate the warranty liability at the end of each year. E16