19. On January 1, 2021, Gemini Corporation leased equipment under a finance lease designed to earn the lessor a 9% rate of return for providing long-term financing. The lease agreement specified ten annual payments of $249,000 beginning January 1, and each December 31 thereafter through 2029. A 10-year service agreement was scheduled to provide maintenance of the equipment as required for a fee of $23,000 per year. Insurance premiums of $16,000 annually are related to the equipment. Both amounts were to be paid by the lessor and the lease payments reflect both expenditures. At what amount will Gemini record a right-of-use asset? (Round your answer to the nearest whole dollar amount.) $1,420,035 $1,259,144 $1,741,816 $1,580,926 On June 30, 2021, Blue, Inc. leased a machine from Large Leasing Corporation. The lease agreement calls for Blue to make semiannual lease payments of $231,346 over a four-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2021. Blue's incremental borrowing rate is 10%, the same rate Big uses to calculate lease payment amounts. Depreciation is recorded on a straight-line basis at the end of each fiscal year. Large constructed the machine at a cost of $1,313,000. (FV of $1. PV of $1, FVA of 51, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which Large Is "selling" the machine (present value of the lease payments) at June 30, 2021. 2. What would be the amounts related to the lease that Large would report in its balance sheet at December 31, 2021? (Ignore taxes.) 3. What would be the amounts related to the lease that Large would report in its income statement for the year ended December 31, 2021? (Ignore taxes.) (For all the requirements, round final answers to the nearest whole dollar amounts.) 1. Present value 2. Lease receivable 3 Income