On December 31, 2018, Blossom Corporation leased a ship from Fort Company for an 8-year period expiring December 30, 2026. Equal annual payments of $600000 are due on December 31 of each year, beginning with December 31, 2018. The lease is properly classified as a finance lease on Blossoms books. The present value at December 31, 2018 of the eight lease payments over the lease term discounted at 11% is $3087674. Assuming all payments are made on time, the amount that should be reported by Blossom Corporation as the total obligation under financel leases on its December 31, 2019 balance sheet is

$2487674.

$66000.

$2161318.

$3087674.