. On January 1, Year 1, Oceana (lessor) and Lucky Lake (lessee) agreed to a 9- year lease for equipment that has an economic life of 10 years. Lucky Lake made its first annual payment on January 1, Year 2 for $3,000. Thereafter, eight more annual payments are due. Title reverts to Lucky Lake at the end of the lease term. The equipment has a fair value at the lease inception date of $20,500. The discount rate is 5%. Which one of the lease conditions below is not met? The lease agreement transfers ownership of the leased asset. The lease agreement contains a purchase option that is reasonably expected to be exercised. The lease term is a major part of the asset's remaining economic life. The present value of the lease payments is substantially all of the underlying asset's fair value D