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 $583 , 573 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 11% , the same rate IC used to calculate lease payment amounts. IC purchased
the equipment from Builders, Incorporated at a cost of $3.9 million. Note: Use tables, Excel, or a
financial calculator. (FV of $1, PV of $1, FVA of $1 , PVA of $1 , FVAD of $1 and 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.