Somerset Corporation leased equipment from Bassett Company. The lease is for 3 years and does not contain a transfer of ownership or written purchase options. The equipment has a useful life of 5 years and is standard equipment that Bassett can use for many projects and functions. The net present value of the lease payments is approximately one-half of the overail fair value of the equipment and there is no guaranteed residual. Somerset and Bassett wil acconumt for this lease-ar