8 of 14 View Policies Current Attempt in Progress -/7 E ! Erdman Corp. signs a lease to rent equipment for ten years. The lease payments of $20,000 per year are due on January 2 each year. At the end of the lease term. Erdman may purchase the equipment for $500. The equipment is estimated to have a useful life of 10 years. Erdman prepares its financial statements in accordance with IFRS. Erdman should classify this lease as a(n): O Finance lease. O Operating lease. O Sales-type lease. O Capital lease. Save for Later Attempts: 0 of 1 used Submit