Tulsa Inc. manufactures and sells heavy equipments. Tulsa leases an equipment to Rusty Company on January 1, 2021. The manufacturing cost of the equipment was $19 million.

This noncancelable lease had the following terms:

Lease payments: $3,173,776 semiannually; first payment at January 1, 2021; remaining payments at June 30 and December 31 each year through June 30, 2025.

Lease term: 5 years (10 semiannual payments).

No residual value; no purchase option.

Economic life of equipment: 5 years.

Implicit interest rate and lessee's incremental borrowing rate: 8% semiannually.

Fair value of the computers at January 1, 2021: $23 million.

What is the outstanding balance of the lease liability in Rusty's June 30, 2021, balance sheet? (Round your answer to the nearest whole dollar.)

Multiple Choice

$23,000,000.

None of these answer choices is correct.

$18,238,546.

$17,638,555.