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Unformatted text preview: 30, 2013, Georgia-Atlantic , Inc ., leas ed a warehous e fac ility from IC Leas ing Corporation. The
leas e agreement c alls for Georgia-Atlantic to mak e s emiannual leas e pay ments of $562,907 over a threey ear leas e term, pay able eac h June 30 and Dec ember 31, with the firs t pay ment at June 30, 2013.GeorgiaAtlantic ’s inc remental borrowing rate is 10% , the s ame rate IC us ed to c alc ulate leas e pay ment amounts .
Deprec iation is rec orded on a s traight-line bas is at the end of eac h fis c al y ear. The fair value of the
warehous e is $3 million. (FV of $1, PV of $1, FV A of $1, PV A of $1, FV A D of $1 and PV A D of $1) (Use a ppropria te
fa ctor(s) from the ta ble s provide d.) ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intviewSing le 1/3 2/25/14 fa ctor(s) from the ta ble s provide d.) Assig nm...
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- Fall '09