1. 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 $202,520 over a five-year lease term, payable each June 30 and December 31, with the first payment on June 30, 2024. Blues incremental borrowing rate is 12%, 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 appropriate factor(s) from the tables.

Required:

1. Determine the present value of the lease payments on June 30, 2024, (to the nearest $000) that Blue uses to record the right-of-use asset and lease liability.
2. What would be the amounts related to the lease that Blue would report in its balance sheet at December 31, 2024? (Ignore taxes.)
3. 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 answers to the nearest whole dollar amounts.