Skysong Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Sheridan Company. The term of the non- cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Sheridan has the option to purchase the equipment for $18,000 upon termination of the lease. It is not reasonably certain that Sheridan will exercise this option. 2. The equipment has a cost of $160,000 and fair value of $189,000 to Skysong Leasing. The useful economic life is 2 years, with a residual value of $18,000. 3. Skysong Leasing desires to earn a return of 5% on its investment. 4. Collectibility of the payments by Skysong Leasing is probable