In 2017, Morton Co. sold 100 hot air balloons at $4,000 each. The balloons carry a five-year warranty for defects. Morton estimates that repair costs will average 4% of the total selling price. The estimated warranty liability at the beginning of the year was $42,000. $11,000 in claims was actually incurred during the year to honor their warranty. What was the balance of the estimated warranty liability at the end of the year? a. $47,000 Ob. $37,000 Oc. $42,000 Od. $5,000