On December 31, 2018, Kuhn Corporation leased a plane from Bell Company for an seven-year period expiring December 31, 2025. Equal annual payments of $450,000 are due on December 31 of each year, beginning with December 31, 2018. The lease is properly classified as a finance lease on Kuhns books. The present value at December 31, 2018 of the eight lease payments over the lease term discounted at 10% is $2,640,792. The lease has a guaranteed residual value of $50,000, however the lessee expects the residual value to be only $25,000. Assuming the first payment is made on time, the amount that should be reported by Kuhn Corporation as the lease liability on its December 31, 2018 balance sheet is