On january 1 2013 packard corporation leased equipment to

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On January 1, 2013, Packard Corporation leased equipment to Hewlitt Company. The lease term is 9 years. The first payment of $456,000 was made on January 1, 2013. Remaining payments are made on December 31 each year, beginning with December 31, 2013. The equipment cost Packard Corporation $2,404,200. The present value of the minimum lease payments is $2,644,200. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 13%, what will be the balance reported as a liability by Hewlitt in the December 31, 2014, balance sheet?

Reference no: EM13588525

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