Raun Digital Solutions signed a 4-year lease at the beginning of the current year. The leased equipment has an economic life of 8 years and a fair value of $1,720. Under the terms of the lease, Raun is required to pay $460 on January 1 of each year. There is no purchase option, and Raun must return the equipment at the end of the lease term. Raun does not know the lessor's implicit rate but recently borrowed at 5% under a 4 -year loan agreement. Should Raun account for this lease as an operating or a finance lease? Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Precent Valie of $1 tahle Precent Vale of an Orrinarv Annititu tahle Before completing the requirement, identify the present value of the lease payments. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculation. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places; X.XXXXX. Round your final answer to the nearest whole dollar.) The present value (PV) of the payments due under the lease is Classify this lease agreement as an operating or a finance lease. Begin by identifying any of the Group I criteria that Raun meets. (Select all that apply. If there is insufficient information to determine if a specific criteria is met, do not check the box for that criteria.) 1. The lease transfers ownership to the lessee at the end of the lease term. 2. The lessee is given an option to purchase the asset that the lessee is reasonably certain to exercise. calculation. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXXX. Round your final answer to the nearest whole dollar.) The present value (PV) of the payments due under the lease is Classify this lease agreement as an operating or a finance lease. Begin by identifying any of the Group I criteria that Raun meets. (Select all that apply. If there is insufficient information to determine if a specific criteria is met, do not check the box for that criteria.) 1. The lease transfers ownership to the lessee at the end of the lease term. 2. The lessee is given an option to purchase the asset that the lessee is reasonably certain to exercise. 3. The lease term is for a major part of the economic life of the asset. 4. The present value of the sum of the lease payments and any residual value the lessee guarantees to pay (that is not otherwise included in the lease payment) is equal to substantially all of the asset's fair value. 5. The leased asset is of a specialized natuie. 6. The lease does not meet any Group I lease criteria. This is a(n) lease for the lessee (Raun) because of the Group I criteria is(are) met. criteria is(are) met