In May of 2013, Truman Financial Services became involved in a penalty dispute with the EPA. At December 31, 2013, the enviromental attorney for Truman indicated that an unfavorable outcome to the dispute was probable. The additional penalties were estimated to be $770,000 but could be as high as $1,170,000. After the financial statements had been published, Truman accepted an EPA settlement offer of $2,000,000. What amount should Truman have reported an accrued liability on its December 31, 2013, balance sheet?