What pretax amounts related to lease georgia-atlantic report

Reference no: EM131893034

Problem

On June 30, 2016, Georgia-Atlantic, Inc., leased a warehouse facility from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $681,881 over a four-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2016.Georgia-Atlantic's incremental borrowing rate is 8%, the same rate IC used to calculate lease payment amounts. Depreciation is recorded on a straight-line basis at the end of each fiscal year. The fair value of the warehouse is $4.8

1. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2016?

2. What pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2016?

Reference no: EM131893034

Questions Cloud

Calculate the kinetic energy of any moving object : We can calculate the kinetic energy of any moving object with a very simple formula 1/2mv^2. A human metabolizing a candy bar

Why would people choose or not choose to carry this card : Explain what you think this means and how the system could be extended outside of public transport. What would some of the barriers to adoption be?

What is global climate change : What is global climate change? What is causing these changes to Earth climate?

Discuss motivational theories used to motivate employees : Think about your present workplace or a workplace with which you are familiar. Describe specifically and in detail how one of the motivational theories.

What pretax amounts related to lease georgia-atlantic report : What pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2016?

Prepare a differential analysis, dated july nineteen : Prepare a differential analysis, dated July 19 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case.

Determine which standard cost variance will be affected : Determine which standard cost variance(s) will be affected, and compute the amount of the effect for one month on each variance.

Why do you think organizations tend to ignore project review : Why do you think organizations tend to ignore project reviews? How could the concept of making such reviews mandatory be implemented?

Storms and wind generated on earth : How does that impact wind systems and storms on those planets? How would they compare to the storms and wind generated on Earth?

User Account

All Pages