Exercise 15-4(Algo) Sales-type lease; lessor; balance sheet and income statement effects [LO15-2] ...
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Exercise Algo Salestype lease; lessor; balance sheet and income statement effects LO 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 asset's 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 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. 
Exercise Algo Salestype lease; lessor; balance sheet and
income statement effects LO
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 asset's
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
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.
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