On December 31, 2026, Ivanhoe Corporation leased a ship from Flint Company for an eight-year period expiring December 31, 2034. Equal annual payments of $650000 are due on December 31 of each year, beginning with December 31, 2026. The lease is properly classified as a finance lease on Ivanhoes books. The present value at December 31, 2026 of the eight lease payments over the lease term discounted at 15% (the appropriate rate for Ivanhoe to use in this situation) is $3354273. Assuming all payments are made on time, the amount that should be reported by Ivanhoe Corporation as the total liability for finance leases on its December 31, 2027 balance sheet is

Select answer from the options below

$3900000.

$3174918.

$3250897.

$2459914.