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 $677 , 829 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 10% , the same rate IC used to calculate lease payment amounts. IC purchased the
equipment from Builders, Incorporated at a cost of $4.6 million. Note: Use tables, Excel, or a
financial calculator. (FV of $1 , PV of $1 , FVA of $1 , PVA of $1 , F V A D 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..
On June 30- 2024- Georgia-Atlantic- Incorporated leased warehouse equi.pdf
1. 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 $677 , 829 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 10% , the same rate IC used to calculate lease payment amounts. IC purchased the
equipment from Builders, Incorporated at a cost of $4.6 million. Note: Use tables, Excel, or a
financial calculator. (FV of $1 , PV of $1 , FVA of $1 , PVA of $1 , F V A D 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.
