. Prepare IOM ( memo) to the Marble Company about their liability and interest expense

Help Saved On June 30, 2018, Hercule, Inc. leased warehouse equipment from Marble, Inc. The lease agreement calls for Hercule to make semiannual lease payments of $843,755 over a three-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018 Hercule's incremental borrowing rate is 8%, the same rate Marble used to calculate lease payment amounts. Marble manufactured the equipment at a cost of $4 million. CFV of $1. PV1. FVA of $1, PVA of $1. EVAD of $1 and PVAD 0) (Use appropriate factor(s) from the tables provided.)