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On June 30, 2018, Hercule, Inc. leased warehouse equipment from Marble, Inc. The lease agreement...

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Accounting

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On June 30, 2018, Hercule, Inc. leased warehouse equipment from Marble, Inc. The lease agreement calls for Hercule to make semiannual lease payments of $2.419,481 over a three-year lease term, payable each June 30 and December 31, with the first paymer at June 30. 2018. Hercule's incremental borrowing rate is 6%, the same rate Marble used to calculate lease payment amounts Marble manufactured the equipment at a cost of $13 million. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of S) (Use appropriate factorfs) from the tables provided.) Required: 1. Determine the price at which Marble is "selling" the equipment (present value of the lease payments) at June 30, 2018 2. What amount related to the lease would Marble report in its balance sheet at December 31, 2018? (Ignore taxes) taxes.) (For all requirements, round your intermediate calculations and final answers to nearest whole dollar.) t amount related to the lease would Marble report in its income statement for the year ended December 31, 2018? (gnore 1. Present value 2. Balance sheet 3. Income statement

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