Island Pool Supply carries a wide variety of commercial quality outdoor swimming pools and supplies to maintain the pools. Island Pool uses two sales promotion techniques - warranties and premiums - to attract and retain customers. Swimming pools are sold with a two-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 6% of sales. The premium is offered on the purchases of chemical supplies to maintain the pool. Customers receive a coupon for each dollar spent on pool chemical supplies. Customers may exchange 250 coupons and $5 for one of an assortment of pool toys. Island Pool pays $16 for each pool toy and estimates that 40% of the coupons given to customers will be redeemed. Island Pool's total sales for 2020 were $7,500,000$6,400,000 from outdoor swimming pools and $1,100,000 from pool chemicals. Replacement parts and labor for warranty work totaled $234,000 during 2020 . A total of 2,500 pool toys used in the premium program were purchased during the year, and there were 286,000 coupons redeemed in 2020. The accrual method is used by Island Pool to account for the warranty and premium costs for financial reporting purposes. The balances in the accounts related to warranties and premiums on January 1, 2020, were as shown below. Instructions Island Pool Supply is preparing its financial statements for the year ended December 31, 2020. Determine the amounts that will be shown on the 2020 financial statements for the following. (a) Warranty liability (b) Inventory of Premiums (c) Premium Liability