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 $562 , 907 over a three-year lease term, 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 uses to calculate lease payment amounts. Amortization is recorded on a straight-line basis at the end of each fiscal year. The fair value of the equipment is $3 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 P V A D of $1 ) Required: 1. Determine the present value of the lease payments on June 30, 2024 that Georgia-Atlantic uses to record the right-of-use asset and lease liability. 2. What amount related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2024 (ignore taxes)? 3. What amount related to the lease would Georgia-Atlantic 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 your final answers to the nearest whole dollar..

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 $562 , 907 over a three-year lease term, 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 uses to calculate lease payment amounts. Amortization is recorded on a straight-line basis at
the end of each fiscal year. The fair value of the equipment is $3 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
P V A D of $1 ) Required: 1. Determine the present value of the lease payments on June 30,
2024 that Georgia-Atlantic uses to record the right-of-use asset and lease liability. 2. What
amount related to the lease would Georgia-Atlantic report in its balance sheet at December 31,
2024 (ignore taxes)? 3. What amount related to the lease would Georgia-Atlantic 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 your final answers
to the nearest whole dollar.