On January 1, 2021, Packard Corporation leased equipment to Hewlitt Company. The lease term is 12 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 $2,998,892. The present value of the lease payments is $3,029,184. 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, 2022, balance sheet? (Round your final answer to nearest dollar.)

Multiple Choice

$2,324,639

$2,458,088

$2,064,639

$2,576,184