Sunland Company includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Sunland $4 each. Sunland estimates that 40 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows:

		2020		2021
Bags of dog food sold		520000		610000
Leashes purchased		18000		22000
Coupons redeemed		110000		150000

The premium liability at December 31, 2020 is

$47000.

$59000.

$49000.

$37000.