On January 1, 2024, Packard Corporation leased equipment to Hewlitt Company. The lease term is 8 years. The first payment of $454,000 was made on January 1, 2024. Remaining payments are made on December 31 each year, beginning with December 31, 2024. The equipment cost Packard Corporation $2,500,686. The present value of the lease payments is $2,525,945. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 12%, what will be the balance reported as a liability by Hewlitt in its balance sheet on December 31, 2025