On January 1, 2011, Packard Corporation leased equipment to Hewlitt Company. The lease term is 8years. The first payment of $450,000 was made on January 1, 2011. Remaining payments are made onDecember 31 each year, beginning with December 31, 2011. The equipment cost Packard Corporation$2,400,000. The present value of the minimum lease payments is $2,640,000. The lease is appropriatelyclassified as a sales-type lease. Assuming the interest rate for this lease is 10%, what will be the balancereported as a liability by Hewlitt in the December 31, 2012, balance sheet?