Reporting Finance Lease, Guaranteed Residual-Lessee Mac Leasing Company (lessor) and Ash Corporation (lessee) signed a four-year lease on January 1 of Year 1. The underlying asset has an estimated life of six years and a fair value of $75,000, and the property reverts to Mac at the end of the lease term. Lease payments of $17,885 are payable on January 1 of each year beginning at the lease commencement and are set to yield Mac a return of 8%, which is known to Ash. The estimated residual value at the end of the lease term is $15,000 and is guaranteed by Ash Corporation. Ash expects the residual value at the end of the lease term to be $15,000. The lease contains no purchase option. Required a. How would Ash Corporation classify the lease? b. What is the lease liability balance on January 1 , the lease commencement date? - Note: Round your answer to the nearest whole dollar. c. Prepare the entries for Ash Corporation on January 1 and December 31 of Year 1. - Note: Round your answers to the nearest whole dollar. d. Assume that Ash Corporation expects the residual value at the end of the lease term to be $5,250. Prepare the entries for Ash Corporation on January 1 and December 31 of Year 1. - Note: Round your answers to the nearest whole dollar