During the year, L&M Leather Goods sold 1,070,000 reversible belts under a new sales promotional program. Each belt carried one coupon, which entitles the customer to a $4.90 cash rebate. L&M estimates that 78% of the coupons will be redeemed, even though only 496,000 coupons had been processed during the year. At December 31, L&M should report a liability for unredeemed coupons of: a. $4,089,540 b. $2,430,400 c. $834,600 d. $1,659,140