"On June 30, 2018, Georgia-Atlantic, Inc. leased a warehouse facility from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $562,907 over a three-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Georgia-Atlantics incremental borrowing rate is 10%, the same rate IC uses to calculate lease payment amounts. Depreciation is recorded on a straight-line basis at the end of each fiscal year. The fair value of the warehouse is $3 million.Required:

1.Determine the present value of the lease payments at June 30, 2018 (to the nearest $000) that Georgia-Atlantic uses to record the right-of-use asset and lease liability. Show as a balance sheet

2.What amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2018 (ignore taxes)?

3.What amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2018 (ignore taxes)?" Please show as an income statement for Dec 31, 2018 which includes June 30, 2018 interest expense, Dec 31, 2018 interest expense, Total Interest expense for 2018, Depreciation Expense for 2018 and Total expenses