Dunne Co$.$ sells equipment service contracts that cover a two$-$year period. The sales price of each contract is $$600.$ Dunne$$s past experience is that, of the total dollars spent for repairs on service contracts, $40\%$ is incurred evenly during the first contract year and $60\%$ evenly during the second contract year. Dunne sold $1,000$ contracts evenly throughout the current year. In its December $31$ balance sheet, what amount should Dunne report as deferred service contract revenue?

A$.$ $$540,000$

B$.$ $$480,000$

C$.$ $$360,000$

D$.$ $$300,000$