On June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from Builders, Inc. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $468,683 over a 5-year lease term (also the asset's useful life), payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 10.0%, the same rate Builders used 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 $3.8 million.

(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

1. Determine the present value of the lease payments at June 30,

2011 that Georgia-Atlantic used to

record

the leased asset and lease liability.

(Enter your answer in dollars not in millions. Round

"PV Factor" to 5 decimal places and final

answer).

2. What pretax amounts related to the lease

would Georgia-Atlantic report in its balance sheet at

December 31, 2011?

(Enter your answers in dollars not in millions. Round "PV

Factor" to 5

decimal places

and final answers to the nearest dollar amount. Omit the "$" sign in your

response).

3. What pretax amounts related to the lease

would Georgia-Atlantic report in its income statement for

the year ended December 31, 2011?

(Enter your answer in dollars not in millions. Round

"PV

Factor" to 5 decimal

places and final answer to the nearest dollar amount. Omit the "$"

sign in

your response).