During Year 1,Great Adventures Sold 150 Dune Buggies for $4,000

During Year 1,Great Adventures sold 150 dune buggies for $4,000 each.The dune buggies carry a five-year warranty for defects.Estimates are that repair costs will average 4% of the total selling price.The estimated warranty liability at the beginning of the year was $14,000,and $20,000 in claims was actually incurred during Year 1 to honour the warranty.What was the warranty expense for Year 1?

A) $10,000
B) $18,000
C) $20,000
D) $24,000