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the answers I put are incorrect. please help Exercise 15-5 Sales-type lease; lessor, balance sheet and income statement effects [L015-3] On June 30, 2018, Georgia-Atiantic,
the answers I put are incorrect. please help
Exercise 15-5 Sales-type lease; lessor, balance sheet and income statement effects [L015-3] On June 30, 2018, Georgia-Atiantic, Inc. leased warehouse equipment from Builders, Inc. The lease agreement calls for Georgia- Atlantic to make semiannual lease poyments of $530475 over a 4-year lease terrm, payable each June 30 and December 31, with the first payment at June 30, 2018. Georgio Atlantic's incremental borrowing rate is 10.0%, the same rate Builders used to co culate lease payment amounts. Bulders manufactured the equipment at a cost of $31 million. FV of $1. PV of $1, FVA of $1, PVA of $I, FVAD of $t and PVAD of S) (Use appropriete 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, 2018 2. What amounts related to the lease would Builders report in its balance sheet at December 31, 2018 (ignore taxesj? 3. What amounts related to the leose would Builders report in its income statement for the year ended December 31, 2018 lignore taxesj? (For all requirements, enter your answers in whole dollers and not in millions. Round your final answer to nearest whole dollar Present value 2.827.154 1.791.464 25.261 Amount to be reported in the balance sheet 3 Amount to be reported in the income statement SStep by Step Solution
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