{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-29T18:19:41-04:00", "answer_date": "2024-05-29 18:19:41", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1899634", "url": "\/study-help\/questions\/on-june-30-2024-georgiaatlantic-incorporated-leased-warehouse-equipment-from-1899634", "question_creation_date_js": "2024-05-29T18:19:41-04:00", "question_creation_date": "May 29, 2024 06:19 PM", "meta_title": "[Solved] On June 30, 2024, Georgia-Atlantic, Incor | SolutionInn", "meta_description": "Answer of - On June 30, 2024, Georgia-Atlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The lease agr | SolutionInn", "meta_keywords": "june,30,2024,georgia-atlantic,incorporated,leased,warehouse,equipment,ic,leasing,corporation,lease", "question_title_h1": " 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", "question_title": " On June 30, 2024, Georgia-Atlantic, Incorporated leased warehouse equipment from IC", "question_title_for_js_snippet": "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 $648,358 over a four 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 10 , 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 $4 40 million Note Use tables, Excel, or a financial calculator (FV of $1, PV of $1, EVA of $1 PVA of $1, FVAD of $1 and PVAD of $1) Required 1 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 2 What amount related to the lease would Georgia Atlantic report in its balance sheet at December 31, 2024 (ignore taxes) 3 What amount related to the lease would Georgia Atlantic report in its income statement for the year ended December 31, 2024 (ignore taxes) Note For all requirements, enter your answers in whole dollars and not in millions Round your final answers to the nearest whole dollar 1 Present value 2 Pretax amount for liability 2 Pretax amount for right of use asset 3 Pretax amount for interest expense 3 Pretax amount for amortization expense", "question_description": "\"image", "transcribed_text": "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 $648,358 over a four-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 10%, 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 $4.40 million. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, EVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. 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. 2. What amount related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2024 (ignore taxes)? 3. What amount related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2024 (ignore taxes)? Note: For all requirements, enter your answers in whole dollars and not in millions. Round your final answers to the nearest whole dollar. 1. Present value 2. Pretax amount for liability 2. Pretax amount for right-of-use asset 3. Pretax amount for interest expense 3. Pretax amount for amortization expense", "related_book": { "title": "Financial and Managerial Accounting the basis for business decisions\t ", "isbn": "0077664078, 978-0077664077, 78111048, 978-0078111044", "edition": "16th edition", "authors": "Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/290.jpg", "uri": "\/textbooks\/financial-and-managerial-accounting-the-basis-for-business-decisions-16th-edition-290", "see_more_uri": "" }, "free_related_book": { "isbn": "0521004276", "uri": "\/textbooks\/census-and-identity-the-politics-of-race-ethnicity-and-language-in-national-censuses-1st-edition-978-0521004275-271796", "name": "Census And Identity The Politics Of Race Ethnicity And Language In National Censuses", "edition": "1st Edition" }, "question_posted": "2024-05-29 18:19:41", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/determine-the-range-of-the-2x-function-y-3-188776", "description": "Determine the range of the 2x function y = 3 sec 3", "stars": 3 }, { "url": "\/consider-the-signal-with-fourier-transform-x969-xr969", "description": "Consider the signal with Fourier transform X () = X R () + j( X 1 ()). 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