Kent Co., a division of National Realty, Inc., maintains escrow accounts and pays real estate taxes for National's mortgage customers. Escrow funds are kept in interest-bearing accounts. Interest, less a 10% service fee, is credited to the mortgagee's account and used to reduce future escrow payments. Additional information follows: Escrow accounts liability, 1/1 $700,000 Escrow payments received during the year $1,580,000 Real estate taxes paid during the year $1,720,000 Interest on escrow funds during year year $50,000 What amount should Kent report as escrow accounts liability in its December 31 balance sheet