Dunn Trading Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Dunn's past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Dunn's ability for stamp redemptions was $6 million at December 31, Year 3. Additional information for Year 4 is as follows: Stamp service revenue from stamps sold to licensees $4,000,000 Cost of redemptions stamps sold prior to 1/1/4) 2,750,000 it all the stamps sold in Year 4 were presented for redemption in Year 5, the redemption cost would be $2,250,000. Whar amount should Dunn report as a ability for stamp redemptions at December 31, Year 47