On January 1, 2018, Crane Company sold property to Blossom Company. There was no established exchange price for the property, and Blossom gave Crane a $4000000 zero-interest-bearing note payable in 5 equal annual installments of $800000, with the first payment due December 31, 2018. The prevailing rate of interest for a note of this type is 8%. The present value of the note at 8% was $3194160 at January 1, 2018. What should be the balance of the Discount on Notes Payable account on the books of Blossom at December 31, 2018 after adjusting entries are made, assuming that the effective-interest method is used? Entry field with incorrect answer

$573670.

$805840.

$550307.