Sarasota Corporation sells home entertainment systems. The corporation also offers to sell its customers a two$-$year warranty

contract as a separate service. During $2023,$ Sarasota sold $25,000$ warranty contracts at $$97$ each. The corporation spent $$150,000$

servicing warranties during $2023,$ and it estimates that an additional $$600,000$ will be spent in the future to service the warranties.

Sarasota recognizes warranty revenue based on the proportion of costs incurred out of total estimated costs.

$($a$)$