On January 1, 20x1, Crown Company sold property to Leary Company. There was no established exchange price for the property, and Leary gave Crown a $4,000,000 zero-interest-bearing note payable in 5 equal annual installments of $800,000, with the first payment due December 31, 20x1. The prevailing rate of interest for a note of this type is 9%. What should be the balance of the Notes Payable account on the books of Leary at December 31, 20x1 after adjusting entries are made, assuming that the effective-interest method is used? $4,000,000. $3,111,721 $2,591,796. 0 3 2 Of thest $3,200,000