Kent Co., a division of National Realty, Inc., maintains escrow accounts and pays real estate taxes for National's mortgage customers. Escrow funds are kept in interest-bearing accounts. Interest, less a 10% service fee, is credited to the mortgagee's account and used to reduce future escrow payments. Additional information follows:
Escrow accounts liability, 1/1/Y2 $ 700,000 Escrow payments received during year 2 1,580,000 Real estate taxes paid during year 2 1,720,000 Interest on escrow funds during year 2 50,000 What amount should Kent report as escrow accounts liability in its December 31, year 2 balance sheet?