Question 25 (4 points) During 2017, Eaton Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to dollar sales are 6% within 2 years following sale. Sales and actual warranty expenditures for the years ended December 31, 2017 are as follows: Sales Actual Warranty Expenditures 2017 $800,000 $12,000 At December 31, 2017, Eaton should report an estimated warranty liability of a) $36,000. b) $25,000 c) $35,000. d) $61,000