12) Winter Company maintains escrow accounts for various mortgage entities. The entity collects the receipts and pays real estate taxes on behalf of mortgage customers. Escrow funds are kept in interest-bearing account. Interest, less a 10% service fee, is credited to the mortgagee's account and used to reduce future escrow payments. Escrow account liability - beginning of year Escrow receipts during the year Real estate taxes paid during the year Interest earned on escrow funds 200,000 1,500,000 500,000 100,000 What is the escrow accounts liability at year-end? 1,290,000 1,310,000 C. 1,300,000 D. 1,500,000 A. B.