Carla Vistalnc. leased a new crane to Flint Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $48,500 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $240,000, and a cost to Carla Vista of $240,000. The estimated fair value of the crane is expected to be $35.000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Carla Vista and Flint adjust and close books annually at December 31. Collectibility of the lease payments is probable. Flint's incremental borrowing rate is 8%, and Carla Vista's implicit interest rate of 8% is known to Flint. Click here to view factor tables. (a). Your answer is correct. Identify the type of lease involved and give reasons for your classification. The lease is classified as an operating lease eTextbook and Media List of Accounts