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: In this situation, Reagan: Multiple Choice is the lessee in a soles-type lease is the lessee in a finance lease. Multiple Choice 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