On January 1, 2021, Packard Corporation leased equipment to Hewlitt Company. The lease term is 10 years. The first payment of $459,000 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 $2,786,286. The present value of the lease payments is $2,814,430. 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

• $2,355,430.

• $2,029,979.

• $1,749,979.

• $2,202,636.