Use the Following Information for Questions 37-39

Multiple Choice

Use the following information for questions 37-39.
Jems & Jewels Inc. offers a two-year warranty against failure of its products. The estimated liability is 4% of sales in the year of sale and 6% in the second year. Sales for 2016 and 2017 were: $2,500,000 and $2,800,000, respectively. They incurred no warranty costs in 2016 but in 2017 they spent $175,000 on repairs related to the warranties from 2016 and 2017.
-The warranty liability as at the end of the 2017 year was

A) $75,000.
B) $280,000.
C) $355,000.
D) $530,000