In 2017,Concord Corporationbegan selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows:

First year of warranty3%Second year of warranty5%

Sales and actual warranty expenditures for 2017 and 2018 are presented below:

20172018Sales$755000$1054000Actual warranty expenditures4600072000

What is the estimated warranty liability at the end of 2018?(assume the accrual method)