on june 30, 2021, georgia-atlantic, inc. leased a warehouse equipment from ic leasing corporation. the lease agreement calls for georgia-atlantic to make semiannual lease payments of $576,798 over a five-year lease term, payable each june 30 and december 31, with the first payment at june 30, 2021. georgia-atlantic's incremental borrowing rate is 12%, the same rate ic uses to calculate lease payment amounts. amortization is recorded on a straight-line basis at the end of each fiscal year. the fair value of the equipment is $4.5 million.
