Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January $1,2009.$ The manufacturing cost of the computers was $$12$ million.

This non$-$cancelable lease had the following terms:

$$ Lease payments: $$2,466,754$ semiannually; first payment at January $1,2009$; remaining payments at June $30$ and December $31$ each year through June $30,2013.$

$$ Lease term: $5$ years $(10$ semi$-$annual payments$)$

$$ No residual value; no bargain purchase option

$$ Economic life of equipment: $5$ years

$$ Implicit interest rate and lessee's incremental borrowing rate: $5\%$ semi$-$annually

$$ Fair value of the computers at January $1,2009$: $$20$ million

Collectibility of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred.

$$

Lone Star Company would account for this as:

Group of answer choices

A capital lease.

A direct financing lease.

A sales type lease.

An operating lease.