2. RE.20-02 Determining Type of Lease Garvey Company (the lessee) entered into an equipment lease with Richie Company (the lessor) on January 1 of Year 1. Use the following information to decide whether this lease qualifies as an operating or capital lease for Garvey, and give an explanation using the four classification criteria. 1. The equipment reverts back to the lessor at the end of the lease, and there is no bargain purchase option