Rebel, Inc. manufactures financial calculators for use by MBA students. The company offers a one-year warranty. Total sales in 2020 were $1,000,000. Based upon previous sales return analyses, the company estimates 4% of sales are returned under warranty, with the cost of repairing and/or replacing the calculators is 25% of retail value. Assume at the start of the year, the Balance Sheet showed a $25,000 warranty liability that had been reserved previously. The balance at the end of the year was $18,000 remaining. What was Rebel, Inc.'s warranty expense for 2020?