Required information Big Top Electronics Inc. offers a two-year warranty on its products. The estimated liability is 4% of sales in the year of sale and 6% in the second year. Sales for 20x0 and 20x1 were: $2,500,000 and $2,800,000, respectively. They incurred no warranty costs in 20X0 but in 20x1 they spent $175,000 on repairs related to the warranties from 20X0 and 20X1. 27 Big Top's warranty liability as at the end of the 20x1 year is Big Top's warranty liability as at the end of the 20x1 year is Multiple Choice 09 $280,000 $75,000 $380,000 $355,000