Neri Foods Corporation leased a commercial food processor on September $30,2024.$ The five$-$year finance lease agreement calls for

Neri to make quarterly lease payments of $$117,464,$ payable each September $30,$ December $31,$ March $31,$ June $30,$ with the first

payment at September $30,2024.$ Neri's incremental borrowing rate is $12\%.$ Neri records amortization on a straight$-$line basis at the end

of each fiscal year. Neri recorded the lease as follows:

September $30,2024$

General Journal

Debit Credit

Right$-$of$-$use asset $($calculated below$)$

$1,800,000$

$1,800,000$

Lease payable $($calculated below$)$

Lease payable

Cash $($first payment$)$

$117,464$

Calculation of the present value of lease payments

$$117,464{15\mathrm{.}3238}^{**}=$$$1,800,000($rounded$)$

$*$Present value of an annuity due of $$1$:$n=20,i=3\%$

Required:

What would be the pretax amounts related to the lease that Neri would report in its statement of cash flows for the year ended

December $31,2024?$

Note: Cash outflows should be indicated with a minus sign. Do not round your intermediate calculations. Enter your answers in

whole dollars and not in millions.

Answer is complete but not entirely correct.