SlideShare ist ein Scribd-Unternehmen logo
1 von 1
Downloaden Sie, um offline zu lesen
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 $648,358 over a four-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 $4.40 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 PVAD
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.

Weitere Àhnliche Inhalte

Mehr von advanceg

Optimal foraging Describe in your own words the optimal for.pdf
Optimal foraging Describe in your own words the optimal for.pdfOptimal foraging Describe in your own words the optimal for.pdf
Optimal foraging Describe in your own words the optimal for.pdf
advanceg
 
On July 1 2021 Truman Company acquired a 70 percent intere.pdf
On July 1 2021 Truman Company acquired a 70 percent intere.pdfOn July 1 2021 Truman Company acquired a 70 percent intere.pdf
On July 1 2021 Truman Company acquired a 70 percent intere.pdf
advanceg
 

Mehr von advanceg (20)

Orange is above black near the bottom Based on the phylogeny.pdf
Orange is above black near the bottom Based on the phylogeny.pdfOrange is above black near the bottom Based on the phylogeny.pdf
Orange is above black near the bottom Based on the phylogeny.pdf
 
Oracle SQL Display the employee_id manager ID and commis.pdf
Oracle SQL  Display the employee_id manager ID and commis.pdfOracle SQL  Display the employee_id manager ID and commis.pdf
Oracle SQL Display the employee_id manager ID and commis.pdf
 
order a Grass Grasshopper Owl Bird b Grasshopper Owl Gr.pdf
order a Grass Grasshopper  Owl Bird b Grasshopper Owl  Gr.pdforder a Grass Grasshopper  Owl Bird b Grasshopper Owl  Gr.pdf
order a Grass Grasshopper Owl Bird b Grasshopper Owl Gr.pdf
 
Orbit Bank insan kaynaklar departman tm alanlara kar tara.pdf
Orbit Bank insan kaynaklar departman tm alanlara kar tara.pdfOrbit Bank insan kaynaklar departman tm alanlara kar tara.pdf
Orbit Bank insan kaynaklar departman tm alanlara kar tara.pdf
 
Options for Answers 18A Er Lumen cytosol nuclear membra.pdf
Options for Answers  18A Er Lumen cytosol nuclear membra.pdfOptions for Answers  18A Er Lumen cytosol nuclear membra.pdf
Options for Answers 18A Er Lumen cytosol nuclear membra.pdf
 
options 1 pluripotency 2 in situ hybridization 3 2D gel.pdf
options 1 pluripotency 2 in situ hybridization  3 2D gel.pdfoptions 1 pluripotency 2 in situ hybridization  3 2D gel.pdf
options 1 pluripotency 2 in situ hybridization 3 2D gel.pdf
 
Oracin temtica para el prrafo Primero la oficina de reg.pdf
Oracin temtica para el prrafo  Primero la oficina de reg.pdfOracin temtica para el prrafo  Primero la oficina de reg.pdf
Oracin temtica para el prrafo Primero la oficina de reg.pdf
 
Oracle SQL Display the employees id number last name an.pdf
Oracle SQL  Display the employees id number last name an.pdfOracle SQL  Display the employees id number last name an.pdf
Oracle SQL Display the employees id number last name an.pdf
 
Orak hcreli anemi genellikle homozigot bireyler iin lmc.pdf
Orak hcreli anemi genellikle homozigot bireyler iin lmc.pdfOrak hcreli anemi genellikle homozigot bireyler iin lmc.pdf
Orak hcreli anemi genellikle homozigot bireyler iin lmc.pdf
 
Oracle PLSQL Substr and Instr I have a view not table wi.pdf
Oracle PLSQL Substr and Instr I have a view not table wi.pdfOracle PLSQL Substr and Instr I have a view not table wi.pdf
Oracle PLSQL Substr and Instr I have a view not table wi.pdf
 
Options Autosomal sex influence dominant in females Xlinke.pdf
Options Autosomal sex influence dominant in females Xlinke.pdfOptions Autosomal sex influence dominant in females Xlinke.pdf
Options Autosomal sex influence dominant in females Xlinke.pdf
 
or the following function Create appropriate comments for.pdf
or the following function  Create appropriate comments for.pdfor the following function  Create appropriate comments for.pdf
or the following function Create appropriate comments for.pdf
 
options 1pectineus lesser trochanter to linea aspera .pdf
options    1pectineus lesser trochanter to linea aspera   .pdfoptions    1pectineus lesser trochanter to linea aspera   .pdf
options 1pectineus lesser trochanter to linea aspera .pdf
 
Optimal foraging Describe in your own words the optimal for.pdf
Optimal foraging Describe in your own words the optimal for.pdfOptimal foraging Describe in your own words the optimal for.pdf
Optimal foraging Describe in your own words the optimal for.pdf
 
Operating Systems Design Please answer this question correc.pdf
Operating Systems Design Please answer this question correc.pdfOperating Systems Design Please answer this question correc.pdf
Operating Systems Design Please answer this question correc.pdf
 
Operating system class Consider a RAID level 5 organization .pdf
Operating system class Consider a RAID level 5 organization .pdfOperating system class Consider a RAID level 5 organization .pdf
Operating system class Consider a RAID level 5 organization .pdf
 
operating system Lets say you have two or more applicatio.pdf
operating system Lets say you have two or more applicatio.pdfoperating system Lets say you have two or more applicatio.pdf
operating system Lets say you have two or more applicatio.pdf
 
On July 1 2020 Concord Ltd borrowed 15500 by signing a .pdf
On July 1 2020 Concord Ltd borrowed 15500 by signing a .pdfOn July 1 2020 Concord Ltd borrowed 15500 by signing a .pdf
On July 1 2020 Concord Ltd borrowed 15500 by signing a .pdf
 
On July 1 2021 Truman Company acquired a 70 percent intere.pdf
On July 1 2021 Truman Company acquired a 70 percent intere.pdfOn July 1 2021 Truman Company acquired a 70 percent intere.pdf
On July 1 2021 Truman Company acquired a 70 percent intere.pdf
 
On June 30 Year 3 Finch Companys total current assets we.pdf
On June 30  Year 3 Finch Companys total current assets we.pdfOn June 30  Year 3 Finch Companys total current assets we.pdf
On June 30 Year 3 Finch Companys total current assets we.pdf
 

KĂŒrzlich hochgeladen

Salient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functionsSalient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functions
KarakKing
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 

KĂŒrzlich hochgeladen (20)

On National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsOn National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan Fellows
 
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptxBasic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
 
How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17
 
Philosophy of china and it's charactistics
Philosophy of china and it's charactisticsPhilosophy of china and it's charactistics
Philosophy of china and it's charactistics
 
latest AZ-104 Exam Questions and Answers
latest AZ-104 Exam Questions and Answerslatest AZ-104 Exam Questions and Answers
latest AZ-104 Exam Questions and Answers
 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and Modifications
 
Graduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - EnglishGraduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - English
 
Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)Jamworks pilot and AI at Jisc (20/03/2024)
Jamworks pilot and AI at Jisc (20/03/2024)
 
Towards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptxTowards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptx
 
Plant propagation: Sexual and Asexual propapagation.pptx
Plant propagation: Sexual and Asexual propapagation.pptxPlant propagation: Sexual and Asexual propapagation.pptx
Plant propagation: Sexual and Asexual propapagation.pptx
 
Salient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functionsSalient Features of India constitution especially power and functions
Salient Features of India constitution especially power and functions
 
ICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptxICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptx
 
Tatlong Kwento ni Lola basyang-1.pdf arts
Tatlong Kwento ni Lola basyang-1.pdf artsTatlong Kwento ni Lola basyang-1.pdf arts
Tatlong Kwento ni Lola basyang-1.pdf arts
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
Single or Multiple melodic lines structure
Single or Multiple melodic lines structureSingle or Multiple melodic lines structure
Single or Multiple melodic lines structure
 
How to setup Pycharm environment for Odoo 17.pptx
How to setup Pycharm environment for Odoo 17.pptxHow to setup Pycharm environment for Odoo 17.pptx
How to setup Pycharm environment for Odoo 17.pptx
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
80 ĐỀ THI THỏ TUYỂN SINH TIáșŸNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỏ TUYỂN SINH TIáșŸNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...80 ĐỀ THI THỏ TUYỂN SINH TIáșŸNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỏ TUYỂN SINH TIáșŸNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
 
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptxHMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
HMCS Max Bernays Pre-Deployment Brief (May 2024).pptx
 
Exploring_the_Narrative_Style_of_Amitav_Ghoshs_Gun_Island.pptx
Exploring_the_Narrative_Style_of_Amitav_Ghoshs_Gun_Island.pptxExploring_the_Narrative_Style_of_Amitav_Ghoshs_Gun_Island.pptx
Exploring_the_Narrative_Style_of_Amitav_Ghoshs_Gun_Island.pptx
 

On June 30 2024 GeorgiaAtlantic Incorporated leased ware.pdf

  • 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 $648,358 over a four-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 $4.40 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 PVAD 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.