ABC Company is an airline which has$5$ jets from DEF Company on lease under following conditions.

$$ The jets shall be available only to ABC Company for the next $10$ years $($useful life is $12$ years$).$

$$ The jets shall be modified to meet specific requirement of ABC Company.

$$ ABC Company shall make quarterly payment which when discounted appropriately equals the cost of the jet plus other related cost.

$$ The ownership of the jets shall remain with DEF Company over the life of the lease and the physical custody of the jets shall be transferred back to DEF Company at the end of the lease term.

Required:

Identify the economic substance of the transaction and demonstrate how it differ from its legal form?