Vaughn Navigation began operations in $2020$ and provides a one$-$year warranty on the products it sells. It estimates that $19500$ of the $400000$ units sold in $2020$ will be returned for repairs and that these repairs will cost $$6$ per unit. The cost of repairing $15600$ units presented for service in $2020$ was $$127800.$ Vaughn estimates that the remaining estimated units will be presented for repair in the following year. Vaughn will report

warranty expense of $$127800$ for $2020.$

no warranty obligation on December $31,2020,$ since this is only a contingent liability.

warranty liability of $$117000$ on December $31,2020.$

warranty liability of $$23400$ on December $31,2020.$