On December 31, the warranty liability was estimated to be $100,000. On January 16 of the following year, results of a study done before December 31 were received. These study results indicate that products would require a much larger amount of warranty repairs than expected; total warranty repairs will be $175,000 instead of the estimated $100,000. The financial statements were issued on February 20. What amount should be reported as warranty liability in the December 31 balance sheet?