Please accurately answer the question below. It is going to be graded. Thank you.

Quinn InC. leases manufacturing equipment from Alan Company. The lease term is 3.5 years and the economic life of the equipment is 5 years. The lease calls for annual payments of $15,000 (with a present value of $46,122) and the fair value of the equipment is $59,000. Alan is certain that minimum lease payments are collectible. No other uncertainties about the lease exist. How would Alan Company most likely categorize the lease under IAS 17?

Select one:

a.Finance lease

b.Operating lease

c.Capital lease

d.Not clearly determinable