Cell www Blue Incorporated leases a piece of equipment to Larkspur Corporation on January 1, 2020. The lease agreement called for annual rental payments of $5,741 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $27,700, a book value of $22.700, and both parties expect a residual value of $8,350 at the end of the lease term, though this amount is not guaranteed. Blue set the lease payments with the intent of earning a 6% return, and Larkspur is aware of this rate There is no bargain purchase option ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables (For calculation purposes, use 5 decimal places as displayed in the factor table provided) (a) Your answer is correct Determine the nature of the lease to both Blue and Larkspur The lease is a/an operating lease to Blue.. The lease is a/an operating lease to Larkspur. Steak and Media ww www 123/31/20 www Deb Det Carrying Values