Misa Company sells 9,000 units of its product for $900 each in 2021. The selling price includes a one-year warranty on parts. It is expected that 4% of the units will be defective and that repair costs will average $200 per unit. In 2021, warranty contracts are honoured on 80 units for a total cost of $16,000. What amount will be reported on Misa Company's balance sheet as Estimated Warranty Liability on December 31, 2021?

a. 16,000 b. 56,000 c. 360 d. 72,000 e. None of the other alternatives are correct