"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 $562907 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. builders manufactured the equipment at a cost of 2.5million"

1. Determine the price at which builders is selling the equipment (present value of the lease payments) at 6/30/2018

2. What amounts related to the lease would Builders report in balance sheet at 12/31/2018?

3. What amount related to the lease would builders report in it's income statement for the year ended 12/31/18( ignore taxes)