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 $50,000, and the property reverts to mac at the end of the lease term. lease payments of $11,923 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 $10,000 and is guaranteed by ash corporation. ash expects the residual value at the end of the lease term to be $10,000. the lease contains no purchase option.