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On June 30,2024, Blue, Incorporated leased a machine from Large Leasing Corporation....

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Accounting

On June 30,2024, Blue, Incorporated leased a machine from Large Leasing Corporation. The
lease agreement calls for Blue to make semiannual lease payments of $298,341 over a three-year
lease term, payable each June 30 and December 31, with the first payment on June 30,2024.
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 $1,331,000.
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD
of $1 and PVAD of $1)
Required:
Determine the price at which Large is "selling" the machine (present value of the lease
payments) on June 30,2024.
What would be the amounts related to the lease that Large would report in its balance sheet
at December 31,2024?(Ignore taxes.)
What would be the amounts related to the lease that Large would report in its income
statement for the year ended December 31,2024?(Ignore taxes.)
Note: For all the requirements, round final answers to the nearest whole dollar amounts.
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