Corinth Co$.$ leased non$-$specialized equipment to Athens Corporation for an eight$-$year period, at which time possession of the

equipment will revert back to Corinth. The equipment cost Corinth $$16$ million and has an expected useful life of $12$ years. Its

FMV is $$22\mathrm{.}4$ million. The present value of the lease payments for both the lessor and lessee is $$20\mathrm{.}6$ million. The first payment

was made at the beginning of the lease. How should Athens classify this lease? As a Finance lease or a Capital Lease?

Finance

Capital