With a lease commencement date of January $1,2024,$ GEO Company leases equiphent with a fair value of $$2,450,000$ to ALG Company. Equal payments under the

Present value of lease payments

Lease term

$$500,000$

$$2,084,950$

Useful life of equipment

$5$ years

$8$ years

Implicit interest rate in lease $($known by Lopez$)$

$10\%$

Neither company considers the $5-$year term to be a major part of the assels $8-$year life Nor do they consider the present value of the lease payments to be substantially all of the tair value of the asset.

Considering only the above information, what amount of totall lease$-$related expense shou ALG report in its December $31,2024$ income Statement?