The L/C stipulates that it is revolving monthly circa USD200,000.00 non-cumulative and valid for five (5) months. What contingent liability must be booked at the time of L/C issuance?

  (1)( ) USD1,110,000.00   (2)( ) USD1,200,000.00

  (3)( ) USD1,220,000.00   (4)( ) USD1,100,000.00