Illustration: CNH Capital (NLD) (a subsidiary of CNH Global) and Ivanhoe Mines Ltd. (CAN) sign a lease agreement dated January 1, 2020, that calls for CNH to lease a front-end loader to Ivanhoe beginning January 1, 2020. The terms and provisions of the lease agreement and other pertinent data are as follows. - The term of the lease is five years. The lease agreement is non-cancelable, requiring equal rental payments of 60,000 at the beginning of each year (annuity-due basis). - The loader has a fair value at the inception of the lease of $225,610 an estimated economic life of five years, and no residual value. - Ivanhoe pays all of the executory costs directly to third parties except for the property taxes of $5,000 per year, which is included as part of its annual payments to CNH. The lease contains no renewal options. The loader reverts to CNH at the termination of the lease. - Ivanhoe's inqemental borrowing rate is 11 percent per year. - Ivanhoe depreciates similar equipment that it owns on a straight-line basis. 1-itdentify the type of lease agreement