A company enters into a lease agreement for a new office building. The lease terms are as follows:

Lease term: $10$ years

Fair value of the building: $$1,500,000$

Annual lease payments: $$200,000($due at the beginning of each year$)$

Economic life of the building: $15$ years

Company's incremental borrowing rate: $8\%$

The lease does not transfer ownership at the end.

There is no bargain purchase option.

Determine if the lease is a finance lease or an operating lease.

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