On January 1, Year 1, Adam sold the property to Jordan. There was no established exchange price for the property, and Jordan gave Adam a $7,000,000 zero-interest-bearing note payable in 7 equal annual installments of $900,000, with the first payment due December 31, Year 1. The prevailing rate of interest for a note of this type is 10% and the present value of the note was $4,381,178 (90000*4.86842 PVf) on January 1, Year 1. What should Jordan record as the balance of the Discount on Notes Payable account on December 31, Year 1 after adjusting entries are made, assuming that the effective-interest method is used? The correct answer is $2,180,704.