Hall Company sells merchandise with a one-year warranty. In the current year, sales consist of 2,567 units. It is estimated that warranty repairs will average $16 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of

a.$41,072

b.$28,750

c.$12,322

d.$0