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Please help me solve this problem. On June 30, 2021, Naruto Uzumaki, Inc. leased a warehouse facility from Sasuke Uchiha Corporation. The lease agreement calls

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On June 30, 2021, Naruto Uzumaki, Inc. leased a warehouse facility from Sasuke Uchiha Corporation. The lease agreement calls for Naruto to make semiannual lease payments of $1,688,721 over a three-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2021. Naruto's incremental borrowing rate is 10%, the same rate Sasuke uses to calculate lease payment amounts. The fair value of the warehouse is $9 million. Sasuke recently purchased the warehouse for $9 million. Required: Amortization is recorded on a straight-line basis at the end of each fiscal year. Round your answers to the nearest whole dollar amounts. 1. Determine the present value of the lease payments at June 30, 2021 (to the nearest $000) that Naruto uses to record the right-of-use asset and lease liability. 2. What amounts related to the lease would Naruto reports in its balance sheet at December 31, 2021? (Ignore taxes.) 3. What amounts related to the lease would Naruto report in its income statement for the year ended December 31, 2021? (Ignore taxes.)

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