Albert Corp. introduced a new machine on January $1,2016.$ The machine carried a two$-$year assurance$-$type warranty against defects. The estimated warranty costs related to dollar sales were $3\%$ in the year of sale and $5\%$ in the year after sale. Additional information follows:

Actual Warranty

Year

Sales

Expenditures

$2016$

$$40,000$

$ $600$

$2017$

$60,000$

$2,200$

$$

If the company uses the GAAP approach of accruing warranty expense $($and the related liability$)$ in the year of the sale, what amount relating to warranty expense should be reflected on the December $31,2017$ income statement?

a$.$

$$7,400$

b$.$

$$5,200$

c$.$

$$2,200$

d$.$

$$4,800$