What will be the balance reported as a liability

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Reference no: EM131221851

On January 1, 2016, Packard Corporation leased equipment to Hewlitt Company. The lease term is 12 years. The first payment of $459,000 was made on January 1, 2016. Remaining payments are made on December 31 each year, beginning with December 31, 2016. The equipment cost Packard Corporation $2,944,400. The present value of the minimum lease payments is $3,184,400. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 12%, what will be the balance reported as a liability by Hewlitt in the December 31, 2017, balance sheet? (Round final answer to the nearest dollar.) $2,725,400. $2,593,448. $2,445,662. $2,426,162.

Reference no: EM131221851

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