On 1/1/16, Padres Co began including two coupons in each box of baseball food it sells. In exchange for 15 coupons and $5, customers will receive an official replica baseball stadium of their favorite team. Each stadium costs Padres Co $25. Padres Co estimates that 35% of the coupons will not be redeemed. Events relating to the coupon promotion during 2017 and 2018 are as follows:

YEAR	Boxes of baseball food sold	Replica stadiums purchased	Actual number of coupons redeemed
2017	915,000	80,000	867,000
2018	1,170,000	90,000	1,494,000

At 12/31/16, the balance of estimated premium liability was $346,000 and the dollar balance of the premium inventory was $565,000.

** REQUIRED:

1) Determine the amount of the following: a) premium expense FYE 12/31/17. 1,586,000 b) premium expense FYE 12/31/18. 2,028,000 c) balance of the estimated premium liability at 12/31/18. 812,000 d) dollar balance of the premium inventory at 12/31/17. 1,120,000 e) number of premiums (figurines) on hand at 12/31/18. 35,200

Here are the correct answers, can you please explain how they were computed.