Mariano Corporation sells 7,000 units of inventory during the first year of operations for $700 each. Mariano provides a oneyear warranty on parts. It is estimated that 4% of the units will be defective and that repair costs are estimated to be $70 per unit. In the year ofsale, warranty contracts are honored on 80 units for a total cost of $5,600. What amount will be reported as Estimated Warranty Liability at the end of theyear?

A.

$19,600

B.

$5,600

C.

$15,680

D.

$ 14000