6) Abadan Company, as lessee, enters into a lease agreement on July 1, 2021, for equipment. The following data are relevant to the lease agreement: 1. 2. 3. 4. 5. The term of the noncancelable lease is 4 years. Payments of $978,446 are due on July 1 of each year. The fair value of the equipment on July 1, 2021 is $3,500,000. The equipment has an economic life of 6 years with no salvage value. Abadan depreciates similar machinery it owns on the sum-of-the-years'-digits basis. The lessee pays all executory costs. Abadan's incremental borrowing rate is 10% per year. The lessee is aware that the lessor used an implicit rate of 8% in computing the lease payments (present value factor for 4 periods at 8%, 3.57710; at 10%, 3.48685). What is the credit to Lease Liability on December 31, 2021? 6) Required supporting computations (Correct answers without correct supporting computations will be marked wrong.)