Question: dial Digital Solutions signed a 3 3 - year lease at the beginning of the current year. The leased equipment has an economic life of

dial Digital Solutions signed a 33-year lease at the beginning of the current year. The leased equipment has an economic life of 55 years and a fair value of $ 1 comma 450$1,450. Under the terms of the lease, DialDial is required to pay $ 500$500 on January 1 of each year. There is no purchase option, and DialDial must return the equipment at the end of the lease term. DialDial does not know the lessor's implicit rate but recently borrowed at 5%5% under a 33-year loan agreement. Should DialDial account for this lease as an operating or a finance lease?

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