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On June 3 0 , 2 0 2 4 , Georgia - Atlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The lease agreement calls
On June GeorgiaAtlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The lease agreement
calls for GeorgiaAtlantic to make semiannual lease payments of $ over a fiveyear lease term, payable each June and
December with the first payment on June GeorgiaAtlantic's incremental borrowing rate is the same rate IC uses to
calculate lease payment amounts. Amortization is recorded on a straightline basis at the end of each fiscal year. The fair value of the
equipment is $ million.
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Required:
Determine the present value of the lease payments on June that GeorgiaAtlantic uses to record the rightofuse asset
and lease liability.
What amount related to the lease would GeorgiaAtlantic report in its balance sheet at December ignore taxes
What amount related to the lease would GeorgiaAtlantic report in its income statement for the year ended December
ignore taxes
Note: For all requirements, enter your answers in whole dollars and not in millions. Round your final answers to the nearest whole
dollar.
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