SM department store sell gift certificate redeemable only when merchandise is purchased. The gift certificates have no expiration date. Upon redemption or expiration, the entity recognizes the unearned revenue as realized.

For 2015

Unearned revenue, January 1 650,000

Gift certificates sold2,250,000

Gift certificates redeemed 1,950,000

Gift certificates expected not to be redeemed 100,000

Cost of goods sold60% of revenue

For 2016

Unearned revenue, January 1 ?

Gift certificates sold1,950,000

Gift certificates redeemed 2,250,000

Gift certificates expected not to be redeemed 200,000

Cost of goods sold60% of revenue

Required:

a. December 31, 2015 unearned revenue

b. December 31, 2016 unearned revenue

c. gross profit from gift certificate for 2015

d. gross profit from gift certificates for 2016