Fox Co. sells major household appliance service contracts for cash. The service contracts are for a 1-year, 2-year, or 3-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $1,440,000 at December 31, Year 1, before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $360,000 at December 31, Year 1. Outstanding service contracts at December 31, Year 1, expire as follows: During Year 2 $ 300,000 During Year 3 $ 450,000 During Year 4 $ 200,000 What amount should be reported as unearned service contract revenues in Foxs December 31, Year 1, balance sheet?

$950,000

$590,000

$490,000

$1,080.000