On January $1,2023,$ Blossom Corp. enters into an agreement with Nicki Rentals Inc. to lease a machine from them. Both corporations

adhere to ASPE. The following data relate to the agreement:

The term of the non$-$cancellable lease is three years with no renewal option. Payments of $$543000$ are due on December $31$

of each year.

The fair value of the machine on January $1,2023,$ is $$1395000.$ The machine has a remaining economic life of $10$ years, with

no residual value. The machine reverts to the lessor upon the termination of the lease.

Blossom depreciates all its machinery on a straight$-$line basis.

Blossom's incremental borrowing rate is $10\%.$ Blossom does not have knowledge of the $8\%$ implicit rate used by Nicki.

Immediately after signing the lease, Nicki discovers that Blossom is the defendant in a lawsuit that is sufficiently material to

make collectibility of future lease payments doubtful.

Click here to view the factor table.

From Blossom's viewpoint, what type of lease is this?

other finance lease

operating lease

finance lease

manufacturer or dealer lease