Cunningham Corp., had a balance of $86,000 in its quality-assurance warranty liability account as of December 31, 2020. In 2021, Cunningham's
warranty expenditures paid were $451,000. its warranty expense is calculated as 1% of sales. Sales in 2021 were $40.6 million. What was the balance
in the warranty liability account as of December 31, 2021?
Multiple Choice
$126,200
$452,600.
$41,000,
$492,000