Exercise 21-02 On December 31, 2019, Windsor Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Windsor to make annual payments of $8,092 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $4,900 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Windsor uses the straight-line method of depreciation for all of its plant assets. Windsor's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. Click here to view factor tables. Your answer is correct. What type of lease is this? This is a/an finance less Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places e.g. 5,275.) Present value of the lease payments Account Titles and Explanation Debit Credit 7 12/31/19 TLoss on Capital Lease Lease Liability (To record the lease) 12/31/19 Lease Liability Cash (To record first lease payment) 12/31/20 | TAmortization Expense TRight-of-Use Asset (To record amortization of the right-of-use asset) T 12/31/20 - TInterest Expense TLease Liability Cash (To record interest expense)