Lute Corporation sells furnaces that include a three-year warranty. Lute can contract with a third party to provide these warranty services. Lute elects the fair value option for reporting financial liabilities. At what amount should Lute record the warranty liability on the balance sheet? The cost of expected warranty services. The present value of expected warranty costs. The fair value of the contract to settle the warranty services. The fair value of the contract to settle less the cost to provide services.