33. On January 2, 2017 Skysong Company leases a machine with a fair value of $35,000 from Snead, Inc., on the following terms: 1.   Noncancelable term of 4 years. 2.   Rental of $8,525 per year (at beginning of each year). 3.   Estimated residual value after 4 years is $8,200. Skysong Company guarantees the residual value of $4,100 and expects the asset to have a value of $4,100 at the end of the lease. 4.   Estimated economic life of the machine is 5 years. 5.   Skysong Company’s incremental borrowing rate is 6% a year. Snead’s implicit rate is unknown. (a)     What is the nature of this lease to Skysong Company? This lease is a(n) select a type of lease

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Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.