As part of the acquisition agreement, Parma Corporation agrees to pay the former shareholders of Stow Company $0.40 in cash for every dollar of gross revenues above $4,500,000 reported at the end of the first year following acquisition. Parma projects the following gross revenues outcomes for the year:

Gross revenues	Probability
$3,500,000	0.05
4,500,000	0.30
5,500,000	0.20
6,500,000	0.25
7,500,000	0.20

Using a 6 percent discount rate, what is the appropriate value to be reported as an earnings contingency liability on Parma's books at the date of acquisition?