liability? 17. Which of the following is a characteristic of a current liability but not a non-current A. Unavoidable obligation. B. Present obligation that entails settlement by probable future transfer or use of cash, goods, or services. C. Settlement is expected within the normal operating cycle, or within 12 months after the reporting date. D. Transaction or other event creating the liability has already occurred. 18. During 2015, Stabler Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: Sales Actual Warranty Expenditures 2014 $ 400,000 $ 6.000 2015 1,000,000 30,000 2016 1.400.000 90.000 $2,800,000 $126,000 What amount should Stabler report as a liability at December 31, 2016? A. $0 B. $ 136,000 C. $ 185,000 D. $ 210,000