On April 1, Santa Fe, Inc. paid Griffith Publishing Company $2,988 for a 36-month subscriptions to several different magazines. Santa Fe debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. What amount should appear in the Prepaid Subscription account for Santa Fe, Inc. after adjustments on December 31 of the first year assuming the company is using a calendar reporting period and no previous adjustment has been made?

$2,988.

0

$9,960.

$7,470.

$2,241.