Marr Co. sells its products in reusable containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Marr accounts for the containers not returned within the time limit as being retired by sale at the deposit amount. Information for 2011 is as follows:

Container deposits at December 31, 2010, from deliveries in 2009 $150,000 2010 430,000 $580,000 Deposits for containers delivered in 2011 780,000 Deposits for containers returned in 2011 from deliveries in 2009 $ 90,000 2010 250,000 2011 286,000 626,000 In Marr’s December 31, 2011 balance sheet, the liability for deposits on returnable containers should be

a. $494,000

b. $584,000

c. $674,000

d. $734,000