On December 31, 2017, Reagan Inc. signed a lease with Silver Leasing Co. for some equipment having a seven-year useful life. The lease payments are made by Reagan annually, beginning at signing date. Title does not transfer to the lessee, so the equipment will be returned to the lessor on December 31, 2023. There is no purchase option, and Reagan guarantees a residual value to the lessor on termination of the lease. Reagan's lease amortization schedule appears below:

Dec. 31	Payments			Interest			Decrease in Balance			Outstanding Balance
2017										$	519,115
2017	$	90,000					$	90,000			429,115
2018	$	90,000		$	17,165			72,835			356,280
2019	$	90,000			14,251			75,749			280,531
2020	$	90,000			11,221			78,779			201,752
2021	$	90,000			8,070			81,930			119,822
2022	$	90,000			4,793			85,207			34,615
2023	$	36,000			1,385			34,615			0

In this situation, Reagan:

		is the lessee in a sales-type lease.
		is the lessee in a finance lease.
		is the lessor in a finance lease.
		is the lessor in a sales-type lease.