J Limited availed an equipment on lease from K Limited. The conditions of the lease terms are as under: Lease starts from 1st April, 2020 for a period of 4 Years and useful life of the equipment is 6 years. Both the cost and fair value of equipment are ₹12,50,000. The equipment reverts back to the lessor on termination of the lease. The unguaranteed residual value is estimated at ₹1,20,000 at the end of the financial year 2023-2024. The amount will be paid in 4 equal instalments at the end of each year. Consider IRR = 8%. The present value of ₹1 at the end of 4th year at 8% of interest is ₹0.735. The present value of annuity of ₹1 due at the end of 4th year at 8% IRR is 3.312 State whether this lease is operating lease or Finance lease (by applying two deterministic parameters). Also calculate unearned finance Income.