Oriole Co. processes jam and sells it to the public. Oriole leases equipment used in its production processes from Pharoah, Inc. This year, Oriole leases a new piece of equipment from Pharoah. The lease term is 5 years and requires equal rental payments of $15,000 at the beginning of each year. In addition, there is a renewal option to allow Oriole to keep the equipment one extra year for a payment at the end of the fifth year of $12,000 (which Oriole is reasonably certain it will exercise). The equipment has a fair value at the commencement of the lease of $77,591 and an estimated useful life of 7 years. Pharoah set the annual rental to earn a rate of return of 5%, and this fact is known to Oriole. The lease does not transfer title, does not contain a bargain purchase option, and the equipment is not of a specialized nature. Click here to view factor tables. How should Oriole classify this lease? Oriole should classify the lease as a/an lease