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On June 30, 2021, Georgia Atlantic, Inc. leased warehouse equipment from Builders, Inc. The lease...

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Accounting

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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 $604152 over a 4-year lease term (also the asset's useful life), payable euch June 30 and December 31. with the first payment at June 30, 2021 Georgia Atlantic's incremental borrowing rate is 100% the same rate Builders used to calculate lease payment amounts. Builders manufactured the equipment at a cost of $3.6 milion (FV of $1 PV of $1, FVA of $1. PVA of S1, FVAD of $1 and PVAD of $11 (Use appropriate factors) from the tables provided) Requtred: 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 tem amounts related to the lease would Builders report in its income statement for the year ended December 31, 2021 Ognore taxes)? For all requirements, enter your answers in whole dollars and not in millions. Round your final answer to the nearest whole dollar) 1 2 Present value Amount to be reported in the balance sheet Amount to be reported in the income statement

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