Mariano Corporation sells 8 comma 000 units of inventory during the first year of operations for $ 400 each. Mariano provides a oneminusyear warranty on parts. It is estimated that 3 % of the units will be defective and that repair costs are estimated to be $ 40 per unit. In the year of sale, warranty contracts are honored on 80 units for a total cost of $ 3 comma 200. What amount will be reported as Estimated Warranty Liability at the end of the year?
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