On January 1, 20x1, LOR Company leased a machine for three years to LEE Company for a cash lease payment payable each January, 20x1, x2, and x3. The machine has a three year life and an expected residual value at the end of three years of $2,000. The carrying value of the machine per LOR's accounting records is $35,665. The machine has a fair market value of $46,665. The interest rate agreed upon by both parties to the lease is 12%. The lessee retains the machine at the end of the lease term at no additional cost. Write a paragraph discussing what kind of lease this is for LOR Company and why. In your discussion, describe which of the finance lease criteria are met. Also describe which of the finance lease criteria are not met. Support your comments with appropriate numerical calculations