Crane Mfg. entered into a 15-year lease agreement for a new machine valued at $50,000 from Frank Leasing. Which of the following would require the lease to be accounted for as a finance lease?

A.

Ownership of the machine reverts to Frank at the end of the lease term.

B.

The present value of lease payments is $30,000.

C.

Frank adapted the machine to be used specifically in Crane's manufacturing facility.

D.

The machine is expected to have a useful life of 25 years.