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Prob 15-3 - Assig nment Pr int View Score 0 3 out of 100...

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2/25/14 Assignment Print View ezto.mhecloud.mcgraw-hill.com/hm_accounting.tpx?todo=printviewSingle 1/3 Score: 0 out of 100 points (0%) 3. aw ard: 0 out of 15.00 points On June 30, 2013, Georgia-Atlantic, Inc., leased a warehouse facility from Builders, Inc. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $562,907 over a three-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2013. Georgia- Atlantic's incremental borrowing rate is 10%, the same rate Builders used to calculate lease payment amounts. Builders constructed the warehouse at a cost of $2.5 million. ( FV of $1 , PV of $1 , FVA of $1 , PVA of $1 , FVAD of $1 and PVAD of $1 ) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which Builders is “selling” the warehouse (present value of the lease payments) at June 30, 2013. Present value 2. What pretax amounts related to the lease would Builders report in its balance sheet year ended December 31, 2013?
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Prob 15-3 - Assig nment Pr int View Score 0 3 out of 100...

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