In 2021, Holyoak Inc. offers a coupon for $25 off qualifying purchases of its new line of products. Holyoak sold 10,100 of these products during the year. By year-end of 2021, 7,200 coupons had been redeemed and the $25 reduction of purchase price provided to customers. Holyoak's historical experience with such coupons indicates that 80% of customers use the coupon. Holyoak recognizes coupon expense in the period coupons are issued. What is the coupon promotion liability that Holyoak should report in its December 31, 2021, balance sheet?

Multiple Choice

• $22,000.

• $11,900.

• $18,660.

• $20,200.