Promise Company offers a 2 month (60 day) manufacturer warranty on its product. At 12/31/2016 Promise reported a Warranty Obligation of $4,150 and during 2017 Promise sold 5,000 units of inventory for $75 each (the units had an original cost to Promise of $25 each). Historically, the company has serviced warranty claims on approximately 6% of the units sold with each repair costing $25 per unit. Promise anticipates this trend to continue in future periods. Promise closely tracks its warranty work and provides the following summary for you:

what is th3 value of warranty expense reported by Promise on its 12/31/2017 income statement?