Tamarisk Company leases an automobile with a fair value of $14,092 from John Simon Motors, Inc., on the following terms:

1.		Non-cancelable term of 50 months.
2.		Rental of $290 per month (at the beginning of each month). (The present value at 0.5% per month is $12,866.)
3.		Tamarisk guarantees a residual value of $1,220 (the present value at 0.5% per month is $951). Tamarisk expects the probable residual value to be $1,220 at the end of the lease term.
4.		Estimated economic life of the automobile is 60 months.
5.		Tamarisks incremental borrowing rate is 6% a year (0.5% a month). Simons implicit rate is unknown. What is the nature of this lease to Tamarisk? The nature of this lease is a/an select a nature of the lease--------operating finance lease