On September 1, 2023, Wong Corporation, which uses ASPE, signed a five-year, non-cancellable lease for a piece of equipment. The terms of the lease called for Wong to make annual payments of $13,668 at the beginning of each lease year, starting September 1 , 2023. The equipment has an estimated useful life of seven years and a $9,000 unguaranteed residual value and a fair value on September 1,2023 , of $79,000. The equipment reverts back to the lessor at the end of the lease term. Wong uses the straight-line method of depreciation for all of its plant assets, has a calendar year end, prepares adjusting journal entries at the end of the fiscal year, and does not use reversing entries. Wong's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. (b) Explain why this lease is considered an operating lease