Part IV-A On December 31, 2018, ABC Inc. leased a heavy equipment from XYZ.XYZ paid $100,000 for the equipment. Its market value is $150,997. The lease agreement specified that the first annual payment of $45,000 starts December 31, 2018, on the date of lease inception. XYZ's interest rate for determining annual payments was 10%. At the end of the three-year lease term (December 31, 2021), the equipment was expected to be worth of $37,134. The estimated useful life of the truck is five years with no salvage value. Both companies use straight-line amortization or depreciation. ABC Inc. guaranteed a residual value of 30,000. ABC's incremental borrowing rate is 8% and is not aware of XYZ's implicit rate. A $1,500 per year maintenance agreement was arranged for the equipment with an outside service firm. As an expedient, XYZ agreed to pay $1,500. This fee, however, will be added to the annual lease payment stipulated on the lease contract. A) How should this lease be classified by ABC (the lessee)? Why