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 $$414,415$ over a five$-$year lease term, payable each June $30$ and December $31,$ with the first payment at June $30,2021.$ Georgia$-$Atlantic's incremental borrowing rate is $10\%,$ the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straight$-$line basis at the end of each fiscal year. The fair value of the equipment is $$3\mathrm{.}4$ 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.$)$Exercise $15-3($Algo$)$ Finance lease; lessee; balance sheet and income statement effects $[$LO$15-2]$

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 $$414,415$ over a five$-$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

$$3\mathrm{.}4$ million. $($FV of $$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:

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.

What pretax amounts related to the lease would Georgia$-$Atlantic report in its balance sheet at December $31,2021?$

What pretax amounts related to the lease would Georgia$-$Atlantic report in its income statement for the year ended December $31,$

$2021?$

$($For all requirements, enter your answers in whole dollars and not in millions. Round your final answers to the nearest whole

dollar.$)$