3. Caymanas Manufacturing Limited negotiated a lease for a machine on January 1, 2020. The useful life of the machine is estimated at 10 years. The fair value of the machine is $1,800,000. The lease term is 4 years. The annual lease payment is $210,000. The financial year end for Caymanas Manufacturing Limited is December 31, 2020. Required: a. Discuss whether this lease should be accounted for as an operating lease or a finance lease in the lessee's books. (13 marks) b. Explain the accounting treatment in the lessee's books for the year ended December 31, 2020. (7 marks)