29. Lessor with a sales-type lease involving an unguaranteed residual value at the end of the lease term will report sales revenue in the period of inception of the lease at which of the following amounts? a. The lease payments plus the unguaranteed residual value. b. The sales price less the present value of the residual value. C. The cost of the asset to the lessor, less the present value of any unguaranteed residual value. d. The present value of the lease payments plus the present value of the unguaranteed residual value. 30. Metcalf Company leases a machine from Vollmer Corp. under an agreement which meets the criteria to be a finance lease for Metcalf. The six-year lease requires payment of $170,000 at the beginning of each year, including $25,000 per year for maintenance, insurance, and taxes. The incremental borrowing rate for the lessee is 10%; the lessor's implicit rate is 8% and is known by the lessee. The present value of an annuity due of 1 for six years at 10% is 4.79079. The present value of an annuity due of 1 for six years at 8% is 4.99271. Metcalf should record the leased asset at a. $848,761 b. $814.435 C. $723,943 d. $694,665 -9