Pharoah Co. processes jam and sells it to the public. Pharoah leases equipment used in its production processes from Shamrock, Inc. This year, Pharoah leases a new piece of equipment from Shamrock. The lease term is 5 years and requires equal rental payments of a payment at the end of the fifth year of $12,000 (which Pharoah is reasonably certain it will exercise). The equipment has a fair value at the commencement of the lease of $91,913 and an estimated useful life of 7 years. Shamrock set the annual rental to earn a rate of return of 7%, and this fact is known to Pharoah. 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 Pharoah classify this lease? Pharoah should classify the lease as a/an lease