Orbiter Corporation sold 10,500 trash compactors for P550 each during 2021. The trash compactors are under warranty for one year following the sale. Maintenance on the trash compactors during the warranty period averages P45 each. Actual warranty costs incurred during 2021 for units sold that year were P148,000. The statement of financial position at year end will report a related liability of:

A. P324,500

B. P472,500

C. P515.450

D. P148,000