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 $648,358 over a four-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 $4.40 million. Note: Use tables,
Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD
of $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 liability. 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.