1 Kathy Company makes a heavy lift crane with an estimated life of 10 years and leases it to Reed Company for a period of 10 years. The normal selling price of the crane is $339,879. The guaranteed residual value at the end of the lease term is $5,000. Reed Company will pay rent of $50,000 at the beginning of each year. Kathy Company incurred costs of $260,000 to manufacture the crane and paid $3,000 to a broker upon consummation of the lease. The present value of the lease payments is $339,879. What type of lease is this for Reed Company (the lessee)? A Finance B Direct financing C Operating D Sales-type