Sunland Ltd. recently signed a lease for equipment from Photon Inc. The lease term is five years and requires equal rental payments of $35,800 at the beginning of each year. The equipment has a fair value at the lease's inception of $157,000, an estimated useful life of eight years, and no residual value. Sunland pays all executory costs directly to third parties. Photon set the annual rental to earn a rate of return of 9%, and this fact is known to Sunland. The lease does not transfer title or contain a BPO. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. (a) What is the nature of the lease assuming Sunland follows IFRS? Sunland should classify the lease as