23). On December 31, 2017, Reagan Inc. signed a lease with Silver Leasing Co for some equipment having a seven-year useful life. The lease payments are made by Reagan annually, beginning at signing date. Title does not transfer to the lessee, so the equipment will be returned to the lessor on December 31, 2023. There is no purchase option, and Reagan guarantees a residual value to the lessor on termination of the lease. Reagan's lease amortization schedule appears below: Dec. 31 Decrease in Outstanding Payments Interest 2017 Balance Balance $ 519.115 2017 $ 90.000 $ 90.000 429.115 2018 S 90.000 $ 17,165 72.835 356.280 2019 S 90,000 14,251 75,749 280.531 2020 5 90.000 11,221 78.779 201,752 2021 $ S 90,000 8.070 81.930 119.822 2022 S 90,000 4.793 85.207 34,615 2023 $ O 36.000 1.385 34,615 23) In this situation, Reagan: Select one: a. is the lessor in a sales-type lease. b. is the lessee in a sales-type lease. C. is the lessor in a finance lease. a d. is the lessee in a finance lease