Carpenter Inc. had a balance of $80,000 in its warranty liability account as of December 31, 2012. In 2013, Carpenter's warranty expenditures were $445,000. Its warranty expense is calculated as 1% of sales. Sales in 2013 were $40 million. What was the balance in the warranty liability account as of December 31, 2013?
A)$35,000.
B)$425,000.
C)$125,000.
D)$480,000.

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The Answer of Carpenter Inc. had a balance of $80,000 in its warranty liability account as of December 31, 2012. In 2013, Carpenter's warranty expenditures were $445,000. Its warranty expense is calculated as 1% of sales. Sales in 2013 were $40 million. What was the balance in the warranty liability account as of December 31, 2013?
A)$35,000.
B)$425,000.
C)$125,000.
D)$480,000.