Tolks-A-Lot, Inc sells cell phohes to customers and expects that 10% of phones sold will be returned for repair under its warranty program. The average repair cost is $75 per phone. For 2021, Talks A Lot has sold 540 cell phones and has repaired 8 of them as of December 31, 2021. What amount of warranty liability should be reported at December 31, 2021? (Do not round intermediate calculations.) Multiple Choice $600 $4,050 None, all expected returns from warranties have been received $3,450