Grouper Corporation leased equipment to Skysong, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,205 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $8,200, a book value of $6,200, and Grouper expects a residual value of $5,700 at the end of the lease term. Grouper set the lease payments with the intent of earning a 6% return, though Skysong is unaware of the rate implicit in the lease and has an incremental borrowing rate of 8%. 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) Determine the nature of the lease to both Grouper and Skysong. The lease is a/an lease to Skysong. The lease is a/an lease to Grouper. e Textbook and Media List of Accounts Save for Later Attempts: 0 of 10 used Submit