Pronghorn Co. Ieases equipment to Stellar inc. on January 1, 2020. The following information relates to the lease agreement. 1. The term of the lease is 5 years with no renewal option, and the machinery has an estimated economic life of 6 years. 2. The cost of the machinery is $853,000, and the fair value of the asset on January 1,2020 , is $1,170.000. 3. At the end of the lease term, the assetreverts to the lessor and has a guaranteed residual value of $81,000.5tellar depreciates all of its equipment on a straight-linebasis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020 . 5. The collectibility of the lease payments is reyonably predictable, and there are no important uncertainties surrounding the amount of costs yet to be incurred by the lesssor. 6. Pronghorn desires a 9% rate of return on its investments. Stellar's incremental borrowing rate is 10x. Pronghorris implicit rate is unknown to Stellar. Determine the nature of this lease for both the lessee and the lessor. Pronghorn Company Stellar Company