On December 31, 2019, Larkspur Corporation signed a 6-year, non-cancelable lease for a machine. The terms of the lease called for Larkspur to make annual payments of $12,136 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 8 years and a $6,100 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Larkspur uses the straight-line method of depreciation for all of its plant assets. Larkspurs incremental borrowing rate is 9%, and the lessors implicit rate is unknown. Click here to view factor tables.

(a) What type of lease is this for the lessee? This is a/an select a type of lease lease.