Business Course A Return to course !! My Subscriptions Olivia Brouss Reporting Finance Lease, Guaranteed Residual-Lessee Mac Leasing Company (lessor) and Ash Corporation (lessee) signed a four-year lease on January 1, 2020. The underlying asset has an estimated life of six years and a fair value of $50,000, and the property reverts to Mac at the end of the lease term. Lease payments of $11,923 are payable on January 1 of each year and were set to yield Mac a return of 8%, which was known to Ash. The estimated residual value at the end of the lease term is $10,000 and is guaranteed by Ash Corporation. Ash expects the estimated residual value at the end of the lease term to be $10,000. The lease contains no purchase option. a. How would Ash Corporation classify the lease? Finance Lease v Amortization Schedule Journal Entries: Estimated Residual = Guaranteed Residual Journal Entries: Estimated Residual