on pretax income related to the lease Amortization expense Total expenses WWW.29 Exercise 15-1 (Static) Lease classification (LO15-11 Stuation $38,000 $41.000 $44,000 $45,000 Lease term (years) Asset's useful if years) Asset's fair value Purchase option that is reasonably certain to be exercised? Annual lease payments Lessor's implicit rate (known by lessee) Lessee's incremental borrowing rate No End of yr. NO NO Beg of yr. Yes End of yr. Bag of yr. 6% 596 5% 5% 5% Each of the four independent situations above describes a lease requiring annual lease $10.000. For each situation, determine the appropriate lease classification by the lessed: $1. PV of $1. EVA of $1. PVA of $1. FVAD of and PVAD of S1) (Use appropriate factors) tables provided.) requiring annual lease payments of classification by the lessee (V of Situation Lease Classification E 15-5 Sales-type lease; lessor; balance sheet and income statement effects 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 $562,907 over a three- 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%, the same rate Builders used to calculate lease payment amounts. Builders manufactured the equipment at a cost of $2.5 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.) Required: 1. Determine the price at which Builders is "selling" the equipment (present value of the lease payments) at June 30, 2021. 2. What amount related to the lease would Builders report in its balance sheet at December 31, 2021 (ignore taxes)? 3. What line item amounts related to the lease would Builders report in its income statement for the year ended December 31, 2021 (ignore taxes)? answers to the nearest whole dollar.) on pretax income related to the lease Amortization expense Total expenses WWW.29 Exercise 15-1 (Static) Lease classification (LO15-11 Stuation $38,000 $41.000 $44,000 $45,000 Lease term (years) Asset's useful if years) Asset's fair value Purchase option that is reasonably certain to be exercised? Annual lease payments Lessor's implicit rate (known by lessee) Lessee's incremental borrowing rate No End of yr. NO NO Beg of yr. Yes End of yr. Bag of yr. 6% 596 5% 5% 5% Each of the four independent situations above describes a lease requiring annual lease $10.000. For each situation, determine the appropriate lease classification by the lessed: $1. PV of $1. EVA of $1. PVA of $1. FVAD of and PVAD of S1) (Use appropriate factors) tables provided.) requiring annual lease payments of classification by the lessee (V of Situation Lease Classification E 15-5 Sales-type lease; lessor; balance sheet and income statement effects 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 $562,907 over a three- 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%, the same rate Builders used to calculate lease payment amounts. Builders manufactured the equipment at a cost of $2.5 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.) Required: 1. Determine the price at which Builders is "selling" the equipment (present value of the lease payments) at June 30, 2021. 2. What amount related to the lease would Builders report in its balance sheet at December 31, 2021 (ignore taxes)? 3. What line item amounts related to the lease would Builders report in its income statement for the year ended December 31, 2021 (ignore taxes)? answers to the nearest whole dollar.)