85 ints eBook Hint References On June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from Builders, Inc. The lease agreement calls for Georgia- Atlantic to make semiannual lease payments of $509,761 over a 5-year lease term (also the asset's useful life), payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 8.0%, the same rate Builders used to calculate lease payment amounts. Builders manufactured the equipment at a cost of $3.8 million. (FV of $1. PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which Builders is "selling" the equipment (present value of the lease payments) at June 30, 2021. 2. What amount related to the lease would Builders report in its balance sheet at December 31, 2021 (ignore taxes)? 3. What line item amounts related to the lease would Builders report in its income statement for the year ended December 31, 2021 (ignore taxes)? (For all requirements, enter your answers in whole dollars and not in millions. Round your final answer to the nearest whole dollar.) 1. 2. 3. Present value Pretax net receivable Total pretax effect on net income

On June 30, 2021, Georgia-Atiantic, Inc. leased warehouse equipment from Builders, Inc. The lease agreement calls for GeorgiaAtlantic to make semiannual lease payments of $509,761 over a 5 year lease term (also the asset's useful lifo), payable each June 30 and December 31 , with the first payment at June 30,2021, Georgia-Atiantic's incremental borrowing rate is 8.0%, the same rate Buliders used to calculate lease payment amounts. Buliders manufactured the equipment at a cost of $3.8 million. (FV of $ ) PV or \$1. EVA of \$1, PVA of \$1. EVAD of \$1 and PVAD of \$1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which Builders is "selling" the equipment (present value of the lease payments) at June 30, 2021. 2. What amount related to the lease would Builders report in its balance sheet at December 31,2021 (ignote taxos)? 3. What line item amounts felated to the lease would Buliders report in its income statement for the year ended December 3t. 2021 (ignore taxes)? (For all requirements, enter your answers in whole dollars and not in millions. Round your final answer to the nearest whole dollar.) On June 30, 2021, Georgia-Atiantic, Inc. leased warehouse equipment from Builders, Inc. The fease agreement calls for GeorgiaAtlantic to make semiannual lease payments of $509761 over a 5 -year lease term (also the asset's useful life), payable each June 30 and December 31 , with the first payment at June 30, 2021 Georgla-Atlantic's incremental borrowing rate is 8,0%, the same rate Bullders used to calculate lease payment amounts. Builders manufactured the equipment at a cost of $3.8 million. (EV of $1. PV of S1. EVA or S1. PVA of \$1. EVAD of \$1 and PVAD of \$1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which Bulders is "seling" the equipment (present value of the lease payments) at June 30, 2021. 2. What amount related to the lease would Builders report in its balance sheet at December 31,2021 (ygnore taxes)? 3. What line item amounts related to the lease would Builders report in its income statement for the year ended December 31 , 2021 (ignore taxes)? (For all requirements, enter your answers in whole dollars and not in millions. Round your final answer to the nearest whole dollar.)