Practice Question 30 In 2016, General Dynamics Corporation began selling a new line of products that carries a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: First year of warranty Second year of warranty 296 5% Sales and actual warranty expenditures for 2016 and 2017 are presented below: Sales Actual warranty expenditures 2016 $600,000 20,000 2017 $800,000 40,000 What is the estimated warranty liability at the end of 2017? 516,000 0 $30,000 $95,000 $58,000