Problemon june 30 2016 georgia-atlantic inc leased a, Ask an Expert

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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 $509,761 over a five-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. IC purchased the warehouse from Builders, Inc. at a cost of $4.3 million.

What pretax amounts related to the lease would IC report in its balance sheet at December 31, 2016?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92721445

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