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 $281,454 over a three-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 $1,250,000. Required: Round your answers to the nearest whole dollar amounts.

1. Determine the price at which Large is "selling" the machine (present value of the lease payments) at June 30, 2021 (to the nearest $000).

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.)