Sterling Co. includes one coupon in each bag of dog food it sells. In return for 4 coupons, customers receive a dog toy that the company purchases for $1.50 each. Sterling's experience indicates that 60 percent of the coupons will be redeemed. During 2017, 97,000 bags of dog food were sold, 11,590 toys were purchased, and 38,800 coupons were redeemed. During 2018, 119,400 bags of dog food were sold, 16,425 toys were purchased, and 59,700 coupons were redeemed. Determine the premium expense to be reported in the income statement and the premium liability on the balance sheet for 2017 and 2018.

	2017	2018
Premium expense	$	$
Premium liability	$	$