On June 3 0 , 2 0 2 4 , Georgia - Atlantic, Incorporated leased warehouse
Question:
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 fiveyear lease term also the assets useful life payable each June and December with the first payment on June GeorgiaAtlantic's incremental borrowing rate is the same rate IC used to calculate lease payment amounts. IC purchased the equipment from Builders, Incorporated at a cost of $ million.
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Required:
What amount related to the lease would IC report in its balance sheet on December ignore taxes
What amount related to the lease would IC report in its income statement for the year ended December ignore taxes
Fundamentals of Corporate Finance
ISBN: 978-0078034640
7th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus