The Laramie Company Recorded an Estimated Liability for Warranty Claims

The Laramie Company recorded an estimated liability for warranty claims related to its 2016 sales of vacuum cleaners of $100,000 in its 2016 balance sheet. The warranty allows customers to get free repairs for two years. By the end of 2018, the company had paid $85,000 of claims. It had no further liability for repairs for the 2016 sales. In the 2018 income statement, the company should recognize

A) $85,000 of expense
B) A benefit in its income statement of $15,000
C) An extra expense in its income statement of $15,000
D) Neither a benefit or an expense