Near year-end it received a pledge of $4,500,000, to be fulfilled in three annual installments of $1,500,000 beginning in one year. The Association determined that a discount rate of 6 percent was appropriate.

Journal Entry:

Pledges receivable$ 4,009,518

Contribution revenue$ 4,009,518

To record a contribution to be received over a three-year period, discounted at 6 percent (in a temporarily restricted fund)

Here is the question and correct journal entry. Is there anyone can help the calculation? How you get this number? Thank you.