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On January 1,2018, Packard Corporation leased equipment to Hewlitt Company. The lease term is 10 years. The first payment of $460,000 was made on January

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On January 1,2018, Packard Corporation leased equipment to Hewlitt Company. The lease term is 10 years. The first payment of $460,000 was made on January 1, 2018, Remaining payments are made on December 31 each year, beginning with December 31, 2018. The equipment cost Packard Corporation $2,495,300. The present value of the lease payments is $2,735,300. The lease is appropriately classifled as a sales-type lease. Assuming the interest rate for this lease is 14%, what will be the balance reported as a liability by Hewitt in the December 31,2019, balance sheer? (Round final answer to the nearest dollar.) Multiple Choice $2,133,842 $318.542 $298,783 $1,972,580

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