On June $30,$ year $1,$ Mercury, Inc. leased warehouse equipment from Unicorn Leasing Corporation. The lease agreement calls for Mercury to make semiannual lease payments of $$300,482$ over a seven$-$year lease term $($also the asset$$s useful life$),$ payable each June $30$ and December $31,$ with the first payment on June $30,$ year $1.$ Mercury$$s incremental borrowing rate is $11\%,$ the same rate Unicorn used to calculate lease payment amounts. Unicorn purchased the equipment from Builders, Inc. at a cost of $$3\mathrm{.}04$ million.

Required:

$1.$ What amount related to the lease would Unicorn $($the lessor$)$ report in its balance sheet on December $31,$ year $1?$

$2.$ What amount related to the lease would Unicorn $($the lessor$)$ report in its income statement for the year ended December $31,$ year $1?$