Panther Co. had a quality-assurance warranty liability of $350,000 at the beginning of 2018 and $310,000 at the end of 2018. Warranty expense is based on 4% of sales, which were $50 million for the year. What were the warranty expenditures for 2018?

a)$0.

b) $1,960,000.

c) $2,000,000.

d) $2,040,000.