Flipper Trading Stamp Co. records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Flipper's past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Flipper's liability for stamp redemptions was $6,000,000 at December 31, year 1. Additional information for year 2 is as follows: >> Stamp service revenue from stamps sold to licensees $4,000,000 >> Cost of redemptions (stamps sold prior to 1/1/Y2) 2,750,000 If all the stamps sold in year 2 were presented for redemption in year 3, the redemption cost would be $2,520,000. What amount should Flipper report as a liability for stamp redemptions at December 31, year 2?