Problem 13-12 Sunland Music Emporium carries a wide variety ofmusical instruments, sound reproduction equipment, recorded music,and sheet music. Sunland uses two sales promotiontechniques—warranties and premiums—to attract customers. Musicalinstruments and sound equipment are sold with a one-year warrantyfor replacement of parts and labor. The estimated warranty cost,based on past experience, is 2% of sales. The premium is offered onthe recorded and sheet music. Customers receive a coupon for eachdollar spent on recorded music or sheet music. Customers mayexchange 200 coupons and $10 for an MP3 player. Sunland pays $21for each player and estimates that 50% of the coupons given tocustomers will be redeemed. Sunland’s total sales for 2017 were$6,824,000—$6,010,000 from musical instruments and soundreproduction equipment and $814,000 from recorded music and sheetmusic. Replacement parts and labor for warranty work totaled$153,400 during 2017. A total of 5,960 players used in the premiumprogram were purchased during the year and there were 1,102,000coupons redeemed in 2017. The balances in the accounts related towarranties and premiums on January 1, 2017, were as shown below.Inventory of Premiums $ 36,310 Premium Liability 42,300 WarrantyLiability 147,800 Sunland Music Emporium is preparing its financialstatements for the year ended December 31, 2017. Determine theamounts that will be shown on the 2017 financial statements for thefollowing. (Round answers to 0 decimal places, e.g. 125.) (a)Warranty Expense $ (b) Warranty Liability $ (c) Premium Expense $(d) Inventory of Premiums $ (e) Premium Liability $