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On December $31,2023,$ Reagan Incorporated signed a lease with Silver Leasing Company for some equipment having a seven$-$year useful life. The lease payments are made by Reagan annually, beginning at signing date. Title does not transfer to the lessee, so the equipment will be returned to the lessor on December $31,2029.$ There is no purchase option, and Reagan guarantees a residual value to the lessor on termination of the lease.

Reagan's lease amortization schedule appears below:

December

Decrease in Outstanding

$31$

Payments

Interest

Balance

Balance

$2023$

$ $375,764$

$2023$

$ $74,900$

$ $74,900$

$300,864$

$2024$

$ $74,900$

$ $30,086$

$44,814$

$256,050$

$2025$

$ $74,900$

$25,605$

$49,295$

$206,755$

$2026$

$ $74,900$

$20,676$

$54,224$

$152,531$

$2027$

$ $74,900$

$15,253$

$59,647$

$92,884$

$2028$

$ $74,900$

$9,288$

$65,612$

$27,272$

$2029$

$ $30,000$

$2,727$

$27,273$

$0$

What is the amount of residual value guaranteed by Reagan to the lessor?

Multiple Choice

$$27,272$

$$30,000$