Exercise 15-3 (Algo) Finance lease; lessee; balance sheet and income statement effects (L015-2) On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $559,946 over a four-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 10%, the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straight-line basis at the end of each fiscal year. The fair value of the equipment is $3.8 million (FV of $1. PV of $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 present value of the lease payments at June 30, 2021 that Georgia Atlantic uses to record the right-of-use asset and 2. What pretax amounts related to the lease would Georgia-Alantic report in its balance sheet at December 31, 2021? 3. What pretax amounts related to the lease would Georglo-Atlantic report in its income statement for the year ended December 31, (For all requirements, enter your answers in whole dollars and not in millions. Round your final answers to the nearest whole dollar) 1. Present value 2. Protax amount for ability Pretax amount for night-of-use asset 3. Pretax amount for interest expense Protax amount for amortization expense