Giannis Corporation leases a building to Jabari, Inc. on January 1, 2017. the following facts pertain to the lease agreement. .....

Exercise 21A25 ad Giannis Corporation leases a building to Jabari, Inc. on January 1, 201?. The following facts pertain to me lease agreement. 1. The lease term is 1|] years will] equal annual rental payments of $3,449 at the end of each year. Ownership does not transfer at die end of the lease term, mere is no bargain purchase epen, and the asset is not of a specialized nature. 3. The building has a fair value of $34,000, a book value to Giannis of $22,000, and a useful life of 15 years. At the end of me lease term, Giannis and Jabari expect the residual value nfthe building to be $12,000, and his amount is guaranteed by Money, Inc., a third party. 5. Giannis wants to earn a 5% retum on the lease, and oollectibility of me payments is probable. Determine die nature of this lease to both Giannis and kind. The lease is afan to lGiannis. The lease is afan l j? to Jabari