4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 17 House Publishers offered a contest in which the winner would receive $1,000,000, payable over 20 years. On December 31, Year 1, House annoursed the winner of the contest and signed a note payable to the winner for $1,000,000, payable in $50,000 installments every January 2: Also on December 31, Year 1, House purchased an annuity for $418,250 to provide the $950,000 prize monies remaining after the first $50,000 installment, which was paid on January 2, Year 2. In its Year 1 income statement, what should House report as contest prize expense? $0 $418,250 $468,250 $1,000,000