Practice Problem 5 (20 minutes) Plum Ltd. entered into four separate contracts to lease new equipment to Grape Co. during the year ended December 31, 2020. Plum prepares its financial statements under IFRS. The details of the leases are described below: Lease number Title passes BPO Useful life of equipment Lease term FV of equipment Lessee's incremental borrowing rate Implicit rate in lease Annual fixed payments, January 1, at beginning of lease term (rounded) Residual, guaranteed, end of lease term, expected to be paid out in cash Specialized asset Credit risk 1 No No 10 years 3 years $120,000 12% 10% $17,547 2 No No 7 years 5 years $55,000 12% 10% $13,190 3 No Yes 9 years 6 years $150,000 12% 10% $31,192 4 No No 9 years 8 years $115,000 12% 10% $19,199 No No $1,000 $5,000 No Normal No Normal No Normal Yes Normal Required: Classify each of the four leases as an operating lease or a finance lease from the perspective of Plum (the lessor)