On January 1, 2020, A Corp. leases a machine from B Corp. through a contract that requires it to make 5 payments of $10,000 each on January 1, starting on that day. The present value of the payments discounted at 10% is $42,000. The useful life of the asset is 10 years, and the market value is $45,000. How should A Corp. classify the lease?

A. None of the above.

B. Sales-type.

C. Finance.

D. Operating.