On June $30,2024,$ Georgia$-$Atlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia$-$Atlantic to make semiannual lease payments of $$414,921$ over a five$-$year lease term $($also the asset$’$s useful life$),$ payable each June $30$ and December $31,$ with the first payment on June $30,2024.$ Georgia$-$Atlantic's incremental borrowing rate is $8\%,$ the same rate IC used to calculate lease payment amounts. IC purchased the equipment from Builders, Incorporated at a cost of $$3\mathrm{.}5$ million.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

What amount related to the lease would IC report in its balance sheet on December $31,2024($ignore taxes$)?$

What amount related to the lease would IC report in its income statement for the year ended December $31,2024($ignore taxes$)?$