On December 31, 2018, Wildhorse Corporation leased a plane from Bell Company for an 7-year period expiring December 31, 2025. Equal annual payments of $459000 are due on December 31 of each year, beginning with December 31, 2018. The lease is properly classified as a capital lease on Wildhorses books. The present value at December 31, 2018 of the 8 lease payments over the lease term discounted at 9% is $2769125. Assuming the first payment is made on time, the amount that should be reported by Wildhorse Corporation as the lease liability on its December 31, 2018 balance sheet is

$2559347.

$2769125.

$2518037.

$2310125.