On December 31, 2018, Sheridan Corporation leased a plane from Bell Company for an 7-year period expiring December 31, 2025. Equal annual payments of $455000 are due on December 31 of each year, beginning with December 31, 2018. The lease is properly classified as afinancelease on Sheridan's books. The present value at December 31, 2018 of the 8 lease payments over the lease term discounted at 10% is $2670131. Assuming the first payment is made on time, the amount that should be reported by Sheridan Corporation as the lease liability on its December 31, 2018 balance sheet is

$2215131.

$2670131.

$2482144.

$2436644.