Sandhill Co. processes jam and sells it to the public. Sandhill leases equipment used in its production processes from Teal Mountain, Inc. This year, Sandhill leases a new piece of equipment from Teal Mountain. The lease term is 5 years and requires equal rental payments of $19.000 at the beginning of each year. In addition, there is a renewal option to allow Sandhill to keep the equipment one extra year for a payment at the end of the fifth year of $14.000 (which Sandhill is reasonably certain it will exercise). The equipment has a fair value at the commencement of the lease of $91,458 and an estimated useful life of 7 years. Teal Mountain set the annual rental to earn a rate of return of 8%, and this fact is known to Sandhill. 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 Sandhill classify this lease? Sandhill should classify the lease as alan lease