3 1 point On January 1, Year 1, Frost Co. entered into a two-year lease agreement with Ananz Co. to lease 10 new computers. The lease term begins on January 1, Year 1, and ends on December 31, Year 2. The lease agreement requires Frost to pay Ananz two annual lease payments of $8,000. The present value of the minimum lease payments is $13,000. Which of the following circumstances would require Frost to classify and account for the arrangement as a finance lease under U.S. GAAP? O Ownership of the computers remains with Ananz throughout the lease term and after the lease ends. The fair value of the computers on January 1, Year 1 is $18,000. O Frost makes modifications to the computers such that the computers have zero economic value to Ananz Co. at the end of the lease term. O The economic life of the computers is three years. Next