Part A (4 Marks) Smith Company had sales of $3,000,000 for the year ending December 31, 2021. All products sold are subject to warranty with an estimated warranty cost of 3%. The estimated warranty payable at the beginning of 2021 was $30,000 and warranty payments during 2021 totalled $42,000. All warranty payments are in cash Required: Calculate the amount of the warranty liability to appear on the December 31, 2021 balance sheet