The balance of the Estimated Warranty Liability account was $12,000 on January 1, 2018, and $13,600 on December 31, 2018. Based on an analysis of warranty claims during the past several years, this year's warranty expense was established at 3% of sales, and sales during the year were $800,000. Required:

a. What amount of warranty expense will appear on the income statement for the year ended December 31, 2018?

b. What were the actual costs of servicing products under warranty during the year?