Identify and briefly discuss the five steps in the revenue recognition process. Explain the importance of a contract in the revenue recognition process. 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 sease term. Windsor uses the straight-line method of depreciation for all of its plant assets. Windsor's incremental borrowing rate is 15%, 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 lease. X Your answer is incorrect. 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 decimal places eg. 5,275.) Present value of the lease payments $ 33630 answers to decimal places 1.8.5,275) Date Debit Account Titles and Explanation Right-of-Use Asset Credit 12/31/19 31,195 31,195 Lease Liability (To record the lease) Lease Liability 12/31/19 8092 Cash 8092 12/31/20 6,239 (To record first lease payment) Amortization Expense Right of Use Asset (To record amortization of the right-of-use asset) Lease Liability 6,239 12/31/20 7037 Interest Expense 1.055 Cash 8092 (To record interest expense)