Swifty Company sells 2050 units of its product for $ 450 each in 2021. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $ 90 per unit. In 2021, warranty contracts are honoured on 50 units for a total cost of $ 4500. What amount will be reported on Swifty Company's balance sheet as Estimated Warranty Liability on December 31, 2021?

$ 4500

$ 5535

$ 1035

cannot be determined