Mega Department Store sells gift certificates redeemable only when merchandise is purchased. Upon redemption, the entity recognizes the unearned revenue as realized. Information for the current year is as follows:

Gift certificates payable, January 1 650,000

Gift certificates sold 2,250,000

Gift certificates redeemed 1,950,000

Gift certificates expected not to be redeemed 100,000

Cost of goods sold 60%

What amount should be reported as unearned revenue at year-end?