Valese Inc. leased standard equipment to Linus Corporation with a lease period of 8 years.At the end of the lease Valese is to have possession of the equipment.Valese paid $16,000 for the equipment.The useful life of the equipment is 12 years.The normal sale price of the equipment is $22,500.The present value of the lease payments for the lessor and lessee is $20,500.The first payment was made the day the lease was signed. Help finding the five criterial for classification as a finance lease?Can Linus classify this as a finance lease?If yes, which criteria it met for a finance lease?

Finance Lease?

Criteria for Classification as a Finance Lease: