On December 31, 2019, Sage Hill Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Sage Hill to make annual payments of $8,026 at the beginning of each year of the lease, 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 lease term. Sage Hill uses the straight-line method of depreciation for all of its plant assets. Sage Hill's incremental borrowing rate is 6%, and the lessor's implicit rate is unknown. Click here to view factor tables. (a) What type of lease is this? This is a/an v lease. Save for Later Attempts: 0 of 1 used Submit