Close Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $480,000 at December 31, 2015 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $120,000 at December 31, 2015. Outstanding service contracts at December 31, 2015 expire as follows:

During 2016During 2017During 2018

$100,000$160,000$70,000

What amount should be reported as unearned service contract revenues in Close's December 31, 2015 balance sheet?

a.$360,000.

b.$330,000.

c.$240,000.

d.$220,000.