Exercise $15-13($Algo$)$ Lessee; operating lease; financial statement effects $[$LO $15-4]$

At January $1,2024,$ Caf$$ Med leased restaurant equipment from Crescent Corporation under a nine$-$year lease agreement.

$-$ The lease agreement specifies annual payments of $\backslash (\backslash$$ $27,000\backslash )$ beginning January $1,2024,$ the beginning of the lease, and on each December $31$ thereafter through $2031.$

$-$ The equipment was acquired recently by Crescent at a cost of $\backslash (\backslash$$ $189,000\backslash )($its fair value$)$ and was expected to have a useful life of $13$ years with no salvage value at the end of its life.

$-$ Because the lease term is only $9$ years, the asset does have an expected residual value at the end of the lease term of $\backslash$$$42,341.$

$-$ Crescent seeks a $\backslash (10\backslash \%\backslash )$ return on its lease investments.

By this arrangement, the lease is deemed to be an operating lease.

Note: Use tables, Excel, or a financial calculator. $($FV of $\backslash$$$1,$ PV of $\backslash$$$1,$ FVA of $\backslash$$$1,$ PVA of $\backslash$$$1,$ FVAD of $\backslash$$$1$ and PVAD of $\backslash$$$1)$

Required:

$1.$ What will be the effect of the lease on Caf$$ Med's earnings for the first year $($ignore taxes$)?$

Note: Enter decreases with negative sign.

$2.$ What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Caf$$ Med $($ignore taxes$)?$

Note: For all requirements, round your intermediate calculations and final answers to the nearest whole dollars.

Exercise $15-4($Algo$)$ Sales$-$type lease; lessor; balance sheet and income statement effects $[$LO$15-2]$

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 $\backslash (\backslash$$ $677,829\backslash )$ over a four$-$year lease term $($also the asset's useful life$),$ payable each June $30$ and December $31,$ with the first payment on June $30,2024.$ Georgia$-$Atlantic's incremental borrowing rate is $\backslash (10\backslash \%\backslash ),$ the same rate IC used to calculate lease payment amounts. IC purchased the equipment from Builders, Incorporated at a cost of $\backslash$$$4\mathrm{.}6$ million.

Note: Use tables, Excel, or a financial calculator. $($FV of $\backslash$$$1,$ PV of $\backslash$$$1,$ FVA of $\backslash$$$1,$ PVA of $\backslash$$$1,$ FVAD of $\backslash$$$1$ and:PVAD of $\backslash$$$1$i

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.

$1.$ Pretax amount of net receivable

$2.$ Pretax amount of interest revenue