Panther Co. had a quality-assurance warranty liability of $348,000 at the beginning of 2021 and $318,000 at the end of 2021. Warranty expense is based on 5% of sales, which were $48 million for the year. What amount of warranty costs were paid during 2021?

Multiple Choice

a. $2,400,000.

b. $2,370,000.

c. $2,430,000.

d. $0.