(Answered) On january 1 2016 packard corporation leased equipment to

Accounting

On January 1, 2016, Packard Corporation leased equipment to Hewlitt Company. The lease term is 9 years. The first payment of $458,000 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 $2,850,000. The present value of the minimum lease payments is $3,090,000. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 8%, 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.)

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