Problem 6-13 Steve's Lawn Equipment sells high-quality lawn mowers and offers a 3-year warranty on all new lawn mowers sold. In 2017, Steve sold $273,700 of new specialty mowers for golf greens for which Steve's service department does not have the equipment to do the service. Steve has entered into an agreement with Mower Mavens to provide all warranty service on the special mowers sold in 2017. Steve wishes to measure the fair value of the agreement to determine the warranty liability for sales made in 2017 The controller for Steve's Lawn Equipment estimates the following expected warranty cash outflows associated with the mowers sold in 2017 Cash Flow Probability Estimate $2,350 3,800 5,270 Year Assessment 20% 6096 20% 2018 $2,960 5,240 6,050 2019 30% 50% 20% 2020 $3,860 5,600 7,210 30% 40% 30% iew fac Using expected cash flow and present value techniques, determine the value of the warranty liability for the 2017 sales. Use an annual discount rate of 5%. Assume all cash flows occur at the end of the year. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The value of the warranty liability for the 2017 sales