On December 31, 2018, Pharoah Corporation leased a plane from Bell Company for an 7-year period expiring December 31, 2025. Equal annual payments of $454000 are due on December 31 of each year, beginning with December 31, 2018. The lease is properly classified as a finance lease on Pharoah's books. The present value at December 31, 2018 of the 8 lease payments over the lease term discounted at 11% is $2593337. Assuming the first payment is made on time, the amount that should be reported by Pharoah Corporation as the lease liability on its December 31, 2018 balance sheet is $2139337 O$2593337. $2424604 $2374664