This four-string instrument belonged to Sharon's father (Curtis Layman) who was born in 1913. (It was probably pre-owned when he got it.) It was made by Lyon and Healy, Chicago. He always referred to it as a tenor guitar and that's what it is.
We searched the internet and asked lots of lists for help. Information would indicate that it was built some time before 1926 (probably in the early 20's). We're now quite certain that it was marketed as a tenor lute but it is a tenor guitar.
We found a remarkably similar instrument on the Mandolin Brothers website. It was listed as a Bacon tenor lute but again, because of the tuning and the length of the neck, etc., it would have technically been a tenor guitar.