June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from IC Leasing Corporation. The lease agreement calls fo eorgia-Atlantic to make semiannual lease payments of $562,907 over a three-year lease term, payable each June 30 and Dece with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 10%, the same rate IC uses to calculat ase payment amounts. Amortization is recorded on a straight-line basis at the end of each fiscal year. The fair value of the equip $3 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 ovided.) -quired: Determine the present value of the lease payments at June 30, 2021 that Georgia-Atlantic uses to record the right-of-use asset se liability. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2021? What pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 21? or all requirements, enter your answers in whole dollars and not in millions. Round your final answers to the nearest whole -llar.) Present value Pretax amount for liability $ $ 300,000 2.437.093

June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from IC Leasing Corporation. The lease agreement calls fo eorgia-Atlantic to make semiannual lease payments of $562,907 over a three-year lease term, payable each June 30 and Dece with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 10%, the same rate IC uses to calculat ase payment amounts. Amortization is recorded on a straight-line basis at the end of each fiscal year. The fair value of the equip $3 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 ovided.) -quired: Determine the present value of the lease payments at June 30, 2021 that Georgia-Atlantic uses to record the right-of-use asset se liability. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2021? What pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 21? or all requirements, enter your answers in whole dollars and not in millions. Round your final answers to the nearest whole -llar.) Present value Pretax amount for liability $ $ 300,000 2.437.093

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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