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On June 30, 2021. Georgia-Atlantic Co, leased a warehouse facility from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments
On June 30, 2021. Georgia-Atlantic Co, 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-jear 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 1C uses to calculate lease payment amounts. Depreciation is recorded on a straight-line basis at the end of each financial year. The fair value of the warehouse is $3 million. Required: 1. Determine the present value of the lease payments at June 30., 2021 (to the nearest 5000) that GeorgiaAtlantic uses to record the right-ofuse asset and lease liability. 2. What pretax amounts related to the lease would Georgia-Atlantic report in its statement of financial position at December 31, 2021? 3. What pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2021
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