Carpenter Inc. had a balance of $80,000 in its warranty liability account as of December 31, 2008. In 2009, Carpenter's warranty expenditures were $445,000. Its warranty expense is calculated as 1% of sales. Sales in 2009 were $40 million. What was the balance in the warranty liability account as of December 31, 2009?

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The Answer of Carpenter Inc. had a balance of $80,000 in its warranty liability account as of December 31, 2008. In 2009, Carpenter's warranty expenditures were $445,000. Its warranty expense is calculated as 1% of sales. Sales in 2009 were $40 million. What was the balance in the warranty liability account as of December 31, 2009?