On January 1, 2021, Packard Corporation leased equipment to Hewlitt Company. The lease term is 10 years. The first payment of $453,000 was made on January 1, 2021. Remaining payments are made on December 31 each year, beginning with December 31, 2021. The equipment cost Packard Corporation $3,031,220. The present value of the lease payments is $3,061,838. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 10%, what will be the balance reported as a liability by Hewlitt in the December 31, 2022, balance sheet? (Round your final answer to nearest dollar.) Multiple Choice $1,955,394. $2,608,838. $2,416,722. $2,205,394