On January 1, 2018, Packard Corporation leased equipment to Hewlitt Company. The lease term is 10 years. The first payment of $459,000 was made on January 1, 2018. Remaining payments are made on December 31 each year, beginning with December 31, 2018. The equipment cost Packard Corporation $2,574,400. The present value of the lease payments is $2,814,400. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 13%, what will be the balance reported as a liability by Hewlitt in the December 31, 2019, balance sheet? (Round final answer to the nearest dollar.)