3 John Company (lessor) purchased equipment for $150,000. John Company made certain modifications to the equipment, which increased its carrying amount on the books of John Company to $160,000. John Company then leased the equipment to Carol Company (lessee). Lease payments of $43,000 are to be made at the end of each year for six years. The present value of the lease payments is $167,213 (which is also the fair value of the equipment) at the commencement date of the lease. At the end of the lease term, ownership of the equipment will be transferred to Carol Company. The equipment has an economic life of six years with no residual value. What type of lease is this for John Company (lessor)? Finance B Direct financing Operating D Sales-type