On June $30,2024,$ Georgia Atlantic leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia Atlantic to make semiannual lease payments of $$300,950$ 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 $12\%,$ the same rate IC Corporation uses to calculate lease payment amount.

 

 

Required:

a$.$ Determine the present value of the lease payments on June $30,2024.$

b$.$ Record the transaction that Georgia Atlantic uses to record the right$-$of$-$use asset and lease liability.