MAM company begun operations in xox1. Its sales were $150,000 in year xw1, and $175,000 in year xxx2. The company prepared estimates assuming the 5% of sales will be the warranty costs for one-year. (4 points) 10. Determine the warranty expense on December 31, xxx1 in the Income Statement. a) $16,250 b) $7,500 c) $8,750 You MUST show your calculations: (4 points) 11. Determine the warranty expense on December 31, xxx2 in the Income Statement. a) $16,250 b) $7,500 c) $8,750 You MUST show your calculations