On June $30,2024,$ Blue, Incorporated leased a machine from Big Leasing Corporation. The lease

agreement qualifies as a finance lease and calls for Blue to make semiannual lease payments of

$$209,938$ over a four$-$year lease term, payable each June $30$ and December $31,$ with the first

payment on June $30,2024.$ Blue's incremental borrowing rate is $8\%,$ the same rate Big uses to

calculate lease payment amounts.

The lease agreement qualifies as a finance lease. Amortization is recorded on a straight$-$line basis

at the end of each year.

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:

Determine the present value of the lease payments on June $30,2024,$ that Blue uses to

record the right$-$of$-$use asset and lease liability.

What would be the amounts related to the lease that Blue would report in its balance sheet

at December $31,2024?($Ignore taxes.$)$

What would be the amounts related to the lease that Blue would report in its income

statement for the year ended December $31,2024?($Ignore taxes.$)$

Note: For all requirements, round your intermediate and final answers to the nearest whole

dollar amounts.

Present value

Right$-$of$-$use asset

Lease liability

Total expenses