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On June 30, 2024, Georgla-Atlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgla-Atlantic to make semlannual lease payments of
On June 30, 2024, Georgla-Atlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgla-Atlantic to make semlannual lease payments of $530,203 over a four-year lease term, payable each June 30 and December 31 , with the first payment on June 30,2024 . Georgla-Atlantic's Incremental borrowing rate is 12%, 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 $3.49 million. Note: Use tables, Excel, or a financlal calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and Required: 1. Determine the present value of the lease payments on June 30, 2024 that Georgla-Atlantic uses to record the right-of-use asset and lease llability. 2. What amount related to the lease would Georgla-Atlantic report in its balance sheet at December 31, 2024 (Ignore taxes)? 3. What amount related to the lease would Georgla-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 mlllions. Round your final answers to the nearest whole dollar
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