Murray Co. has reported the following after its first year of operations: Income before taxes $140,000 Income taxes payable $39,000 Deferred income tax 3,000 Income tax expense 42,000 Warranty expense accrual 48,000 Murray estimates its annual warranty expense as a percentage of sales. No other differences existed between accounting and taxable income. Assuming a 30% income tax rate, what amount of warranty costs did the company actually incur during the year