On June 30,2021, Atlas, Inc. leased a warehouse facility from LT Leasing Corporation. The lease...
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Accounting
On June Atlas, Inc. leased a warehouse facility from LT Leasing Corporation. The lease agreement calls for Atlas to make semiannual lease payments of $ over a threeyear lease term, payable each June and December with the first payment at June Atlas's incremental borrowing rate is the same rate LT uses to calculate lease payment amounts. The fair value of the warehouse is $ million. LT recently purchased the warehouse for $ million.Required:Amortization is recorded on a straightline basis at the end of each fiscal year. Round your answers to the nearest whole dollar amounts. Show your workDetermine the present value of the lease payments at June to the nearest $ that Atlas uses to record the rightofuse asset and lease liabilityWhat amounts related to the lease would Atlas report in its balance sheet at December Ignore taxes.What amounts related to the lease would Atlas report in its income statement for the year ended December Ignore taxes.
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