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help please On June 30, 2021, Georgia Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation The loase agreement calls for Georgia Atlantic to
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On June 30, 2021, Georgia Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation The loase agreement calls for Georgia Atlantic to make semiannual lease payments of $681229 over a four-year lease term payable each June 30 and December 31, with the first payment at June 30, 2021. Georglo-Atlantie's incremental borrowing rate is 8%, the same rate I uses to calculate lease payment amounts. Amortization is recorded on a straight-line basis of the end of each fiscal year. The folt value of the equipment is $4.8 million (FV of $1. PV or $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD 51 (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 lease liability 2. What pretax amounts related to the lease would Georgia Atlantic report in its balance sheet at December 31, 2017 3. What pretax amounts related to the lease would Georgia Atlantic report in its income statement for the year ended December 31, 20212 (For all requirements, enter your answers in whole dollars and not in millions. Round your final answers to the nearest whole dollar.) $ 4.770.000 1. Present value 2 Pretax amount for liability Pretax amount for right-of-use asset 3. Pretax amount for interest expense Pretax amount for amortization expense Step by Step Solution
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