On June 30, 2024, Georgia-Atlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $530,475 over a four-year lease term (also the assets useful life), payable each June 30 and December 31, with the first payment on June 30, 2024. Georgia-Atlantic's incremental borrowing rate is 10%, the same rate IC used to calculate lease payment amounts. IC purchased the equipment from Builders, Incorporated at a cost of $3.6 million.

1. What amount related to the lease would IC report in its balance sheet on December 31, 2024 (ignore taxes)?
2. What amount related to the lease wouldIC report in its income statement for the year ended December 31, 2024 (ignore taxes)?