Plum Ltd. entered into four separate contracts to lease new equipment to Grape Co. during the year ended December 31, Year 1. Plum prepares its financial statements under IFRS. The details of the...

Extracted text: Plum Ltd. entered into four separate contracts to lease new equipment to Grape Co. during the year ended December 31, Year 1. Plum prepares its financial statements under IFRS. The details of the leases are described below: 2 Lease number Title passes ВРО 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 4 No No No No No 10 years 3 years $120,000 12% Yes, $1,000 9 years 6 years $150,000 12% No No 7 years 5 years $55,000 12% 9 years 8 years $115,000 12% 10% 10% 10% $31,192 10% $17,547 $13,190 $19,199 No No No $5,000 No Normal No No Yes Normal Normal Normal Required: Classify each of the four leases as an operating lease or a finance lease from the perspective of Plum (the lessor).