Tarkan Inc. leases an asset with the following information:

Fair value of the asset: $400,000.

Useful life of the asset: 6 years with no economic salvage value.

Lease term is 3 years.

Annual lease payments (starting from beginning of year) are $60,000.

Implicit interest rate: 6%.

Tarkan can purchase the asset at the end of the lease period for $100,000.

What type of lease is this?

	a.	Operating
	b.	Finance
	c.	Short term
	d.	Long term
	e.	Sale-Leaseback