Carpenter Inc

Multiple Choice

Carpenter Inc.had a balance of $80,000 in its quality-assurance warranty liability account as of December 31,2015.In 2016,Carpenter's warranty expenditures were $445,000.Its warranty expense is calculated as 1% of sales.Sales in 2016 were $40 million.What was the balance in the warranty liability account as of December 31,2016?

A) $ 35,000.
B) $425,000.
C) $125,000.
D) $480,000.