On January 1, 2019, Renee Corp., a lessee, signed a five-year lease for new equipment that qualified as a finance lease. The lease requires annual payments of $8,000. The first payment is due on December 31, 2019. Renee guaranteed a residual value of $2,500, and expects the asset's fair value to be $2,500 at the end of the lease. On December 31, 2023, Renee returned the asset to the lessor, and the asset was appraised at a value of $1,500. Renee should record which of the following on December 31, 2023?
a. a $500 debit to Cash
b. a $1,500 credit to Cash
c. a $1,500 credit to Right-to-Use Asset
d. a $500 debit to Loss on Guaranteed