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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 30,2024, Georgia-Atlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $403,067 over a five-year lease term, payable each June 30 and December 31, with the first payment on June 30,2024. Georgia-Atlantic's incremental borrowing rate is 8%, 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 $3.40 million.
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Required:
Determine the present value of the lease payments on June 30,2024 that Georgia-Atlantic uses to record the right-of-use asset and lease liability.
What amount related to the lease would Georgia-Atlantic report in its balance sheet at December 31,2024(ignore taxes)?
What amount related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31,2024(ignore taxes)?

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