Wiley Corp. offers a 3 year warranty. They expect the warranty costs to be 2% of the selling price in the 1st year, 3% in the second and third year. Sales in year 1 = $5403815 and warranty costs incurred =$197891. What is the balance in the warranty liability account?

a. $ 234414

b. $ 288452

c. $ 432305

d. $ 197891