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 $$468,683$ over a five$-$year lease term, payable each June $30$ and December $31,$ with the first payment on June $30,2024.$ Georgia$-$Atlantic's incremental borrowing rate is $10\%,$ the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straight$-$line basis at the end of each fiscal year. The fair value of the equipment is $$3\mathrm{.}80$ million.

Exercise $15-3($Algo$)$ Finance lease; lessee; balance sheet and income statement effects $[$LO$15-2]$

On June $30,2024,$ Georgla$-$Atlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgla$-$Atlantic to make semlannual lease payments of $\backslash (\backslash$$ $468,683\backslash )$ over a five$-$year lease term, payable each June $30$ and December $31,$ with the first payment on June $30,2024.$ Georgla$-$Atlantic's Incremental borrowing rate Is $10\backslash \%,$ the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straight$-$line basis at the end of each fiscal year. The fair value of the equipment is $\backslash (\backslash$$ $3\mathrm{.}80\backslash )$ million.

Note: Use tables, Excel, or a financlal 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:

$1.$ 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 llability.

$2.$ 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. Exercise $15-3($Algo$)$ Finance lease; lessee; balance sheet and income statement effects $[$LO$15-2]$

On June $30,2024,$ Georgla$-$Atlantic, Incorporated leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgla$-$Atlantic to make semlannual lease payments of $\backslash (\backslash$$ $468,683\backslash )$ over a five$-$year lease term, payable each June $30$ and December $31,$ with the first payment on June $30,2024.$ Georgla$-$Atlantic's Incremental borrowing rate is $10\backslash \%,$ the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straight$-$line basis at the end of each fiscal year. The fair value of the equipment is $\backslash (\backslash$$ $3\mathrm{.}80\backslash )$ million.

Note: Use tables, Excel, or a financlal 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:

$1.$ 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 llability.

$2.$ 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 Georgla$-$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.

Answer is complete but not entirely correct.