On June GeorgiaAtlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for GeorgiaAtlantic to make semiannual lease payments of $ over a fouryear lease term, payable each June and December with the first payment on June GeorgiaAtlantic's incremental borrowing rate is the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straightline basis at the end of each fiscal year. The fair value of the equipment is $ million.
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Required:
Determine the present value of the lease payments on June that GeorgiaAtlantic uses to record the rightofuse asset and lease liability.
What amount related to the lease would GeorgiaAtlantic report in its balance sheet at December ignore taxes
What amount related to the lease would GeorgiaAtlantic report in its income statement for the year ended December ignore taxes
