Exercise 21A-21 a-d Grouper Incorporated leases a piece of equipment to Skysong Corporation on January 1, 2017. The lease agreement called for annual rental payments of $5,344 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 $25,700, a book value of $20,700, and both parties expect a residual value of $8,300 at the end of the lease term, though this amount is not guaranteed. Grouper set the lease payments with the intent of earning a 7% return, and Skysong 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 (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Determine the nature of the lease to both Grouper and Skysong The lease is a/an the factor table lease to Grouper The lease is a/an lease to Skysong Exercise 21A-21 a-d Grouper Incorporated leases a piece of equipment to Skysong Corporation on January 1, 2017. The lease agreement called for annual rental payments of $5,344 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 $25,700, a book value of $20,700, and both parties expect a residual value of $8,300 at the end of the lease term, though this amount is not guaranteed. Grouper set the lease payments with the intent of earning a 7% return, and Skysong 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 (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Determine the nature of the lease to both Grouper and Skysong The lease is a/an the factor table lease to Grouper The lease is a/an lease to Skysong