Marin Company Sells 9,000 Units of Its Product in 2021

Marin Company sells 9,000 units of its product in 2021 for $500 each.The selling price includes a one-year warranty on parts.It is expected that 3% of the units will 1.and that repair costs will average $50 per unit.In the year of the sale, warranty contracts
Are honored on 180 units for a total cost of $9,000.
What amount will be reported on Marin Company's balance sheet as Warranty Liability on December 31, 2021?

A) $9,000.
B) $13,500.
C) $4,500.
D) Cannot be determined.