9. Somerset Corporation leased equipment from Bassett Company The lease is for 3 years and does not contain a transfer of ownership or written purchase options. The equipment has a useful life of 5 years and is standard equipment that Bassett can use for many projects and functions . The net present value of the leade payments is approximately one - half of the overall fair value of the equipment and there is no guaranteed residual Somerset and Bassett will account for this lease as?.. A, B, C, or D

A. \begin{tabular}{|c|c|} \hline Somerset & Bassett \\ \hline Operating & Sales-type \\ \hline \hline Somerset & Bassett \\ \hline Finance & Sales-type \\ \hline \hline Somerset & Bassett \\ \hline Operating & Operating \\ \hline \hline Somerset & Bassett \\ \hline Finance & Operating \\ \hline \end{tabular}