Sony introduces a new compact music player to compete with Apples iPod that carries a two-year warranty against manufacturers defects. Based on industry experience with similar product introductions, warranty costs are expected to be approximately 2% of sales. By the end of the first year of selling the product, total sales are $30.6 million, and actual warranty expenditures are $260,000. What amount (if any) should Sony report as a liability at the end of the year?