Phillips Corporation has entered into a monthly leasing contract for 36 months on an asset with a useful life of 5 years. The asset's estimated fair value is $25,000. The contract requires monthly lease payments of $950. There is no bargain purchase option or transfer of ownership in the lease contract. The discount rate is 8%. How should Phillips record this lease? Select one: O A. This is a straightforward lease agreement in which neither the leased asset nor the lease liability needs to be recorded on the lessee's balance sheet B. This is an operating lease requiring both the leased asset and the corresponding lease liability to be recorded on the lessee's balance sheet and the lease expense recorded in equal annual amounts. O O C. This is a finance lease requiring the leased asset and corresponding lease liability to be recorded on the lessee's balance sheet and the lease amortized using straight-line depreciation D. There is not enough information provided to determine if this lease agreement qualifies as a straightforward period lease, operating lease, or finance lease. 0