On December 31, 2020, 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, 2026. 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 2020 2020 2021 2022 2023 2024 2025 2026 $79,700 $79,700 $79,700 $79,700 $79,700 $79,700 $31,900 $24,363 20,489 16,345 11,910 7,164 2,087 Decrease in Outstanding Balance Balance $427,742 $79,700 348,042 55,337 292,705 59,211 233,494 63,355 170,139 67,790 102,349 72,536 29,813 29,813 What is the amount of residual value guaranteed by Reagan to the lessor