Show transcribed image text f Facabook xCHAPTER 15 LEASES Accounting question I Chegg lason x ← e D ezto.mheducation.com.hm.tpx 3 15.00 points Exercise 15-10 Sales-type lease; lessor; balance sheet and income statement effects [LO15-6] On June 30, 2016, Georgia-Atlantc, Inc., leased a warehouse faclity from Bullders, Inc. The lease agroerment calls for Gorgia Aantic to make semiannual lease payments af $576,798 over a 5-yar lease term, payable each June 30 and December 31, with the first payment at June 30, 2016. Georgia-Atlantics incremental borrowing rate is 12.0%, the same rate Builders used to calculate lease payment amounts. Builders constructed the warehouse at a cost of $4.0 million. EVof $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which Buides is "selling" the warehouse (present value of the laase payments) at June 30, 2016. t value 2. What prelax amcunts relaled to the lease would Buikders report in its balance sheel a December 31, amaunt 3. What pretax amounts related to the lease would Bulders report in its Income statement for the yeer ended Dacembar 31, 2016 Hints References eBook & Resources