Pharoah Corp. is a manufacturer of truck trailers. On January $1,2021,$ Pharoah Corp. leases $11$ trailers to Sheridan Company under a $6-$year noncancelable lease agreement. The following information about the lease and the trailers is provided:

Equal annual payments that are due on January $1$ each year provide Pharoah Corp. with an $8\%$ return on net investment.

Titles to the trailers pass to Sheridan at the end of the lease.

The fair value of each trailer is $$52,400.$ The cost of each trailer to Pharoah Corp. is $$45,100.$ Each trailer has an expected useful life of nine years.

Collectibility of the lease payments is probable.

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$($a$)$

What type of lease is this for the lessor?