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On January 1, 2018, Packard Corporation leased equipment to Hewlitt Company. The lease term is 10 years. The first payment of $453,000 was made on
On January 1, 2018, Packard Corporation leased equipment to Hewlitt Company. The lease term is 10 years. The first payment of $453,000 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 $2,928,800. The present value of the lease payments is $3,168,800. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 9%, 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.) 0/1.66 polnts awarded Scored Print Multiple Choice $2,507,222. $2,160,372. $2,279,872
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