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Talks - A - Lot, Incorporated sells cell phones to customers and expects that 1 0 % of phones sold will be returned for repair

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Talks-A-Lot, Incorporated sells cell phones to customers and expects that 10% of phones sold will be returned for repair under its warranty program. The average repair cost is $72 per phone. For 2024, Talks-A-Lot has sold 560 cell phones and has repaired 8 of them as of December 31,2024. What amount of warranty liability should be reported at December 31,2024?(Do not round intermediate calculations.)
Multiple Choice
A. $4,032
B. $3,456
C. $576
D. Zero: all expected returns from warranties have been received
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