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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

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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 $464,149 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 8%, the same rate 1C 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 $3.25 million. Note: Use tables, Excel, or a financial calculator. (FV of \$1, PV of \$1. FVA of \$1. PVA of \$1, EVAD 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-ofuse 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. 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 $486,146 over a four-year lease term (also the asset's useful life), payable each June 30 and December 31, with the first payment on June 30, 2024, Georgia-Atlantic's incremental borrowing rate is 12%, the same rate IC used to calculate lease payment amounts. IC purchased the equipment from Builders, Incorporated at a cost of $3.2 million. Note: Use tables, Excel, or a financial calculator. (FV of \$1, PV of \$1. EVA of \$1. PVA of \$1, EVAD of \$1 and PVAD of \$1) Required: 1. What amount related to the lease would IC report in its balance sheet on December 31,2024 (ignore taxes)? 2. What amount related to the lease would IC 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 the intermediate calculation and final answers to the nearest whole dollar

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