Hay Corporation leased a machine from Marly Rentals Co. on January 1, 2008 for the purpose of being used in its manufacturing operations. The following data pertain to the lease agreement: (a) The term of the non-cancelable lease is 3 years with no renewal option and no residual value. Payments of $155,213 are due on December 31 of each year. The present value of the future lease payments is $400,000 at January 1, 2008. (b) The fair value of the machine on January 1, 2008, is $400,000. The machine has a remaining economic life of 4 years, with no salvage value. The machine reverts to the lessor upon the termination of the lease. (c) Hay depreciates all machinery it owns on a straight-line basis. (d) Hay has knowledge of the 8% implicit interest rate used by Marly. 18. What type of lease is this from Hay Corporation's viewpoint? o Operating lease Direct-financing lease 18. What type of lease is this from Hay Corporation's viewpoint? Operating lease Direct-financing lease Finance lease Sales-type lease Question 19 5 pts 19. What is the amount of the reduction in the lease liability for Hay Corp. in the second full year of the lease if Hay Corp. accounts for the lease as a finance lease? $143,717 $155,213 $133,070 $123,213 20. If Marly records this lease as a sales-type lease, what amount would be recorded as Lease Receivable at the inception of the lease? $155,213 $385,991 $400,000 $465,638