6. On December 31, 2021, Pharoah Co. leased a machine from Catt, Inc. for a 5-year period. Equal annual payments under the lease are $1,800,000 and are due on December 31 of each year. The first payment was made on December 31, 2021, and the second payment was made on December 31, 2022. The five lease payments are discounted at 11% over the lease term. The present value of minimum lease payments at the inception of the lease and before the first annual payment was $7,384,410. The lease is appropriately accounted for as a finance lease by Pharoah. In its December 31, 2022 balance sheet, Pharoah should report a lease liability of