FFelton Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $480,000 at December 31, 2009 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $120,000 at December 31, 2009. Outstanding service contracts at December 31, 2009 expire as follows:
What amount should be reported as unearned service contract revenues in Felton's December 31, 2009 balance sheet?
a) $360,000.
b) $330,000.
c) $240,000.
d) $220,000.