Green LTD sells 4000 units of inventory during the year for $500 each. The selling price includes a one year warranty on parts. It is estimated that 3% of the units will be defective and that repair cost our estimated to be $50 per unit. In the year of cell, warranty contracts are honored on 80 units for a total cost of $4000. What amount will be reported as estimated warranty liability at the end of the year a. $4000 b $2000 c $6,000 d $0