Current Attempt in Progress

Oriole Corporation has signed a $5-$year lease for machinery with a cost of $$232,000.$ The asset has an economic life of $9$ years zero salvage value. Annual minimum lease payments made at the end of year are $$28,000$ and the discount rate is $7\%.$ There bargain purchase option available on the lease.

Identify whether the machinery should be treated as an operating or capital lease assuming Oriole follows ASPE.

The machinery should be treated as a$($n$)$