Lithium Inc. sells computer systems. Lithium leases computers to Evergreen Company on January 1, 2019. The manufacturing cost of the computers was $12 million. This noncancelable lease had the following terms: • Lease payments: $2,466,754 semiannually; first payment at January 1, 2019; remaining payments at June 30 and December 31 each year through June 30, 2023 • Lease term: five years (10 semiannual payments) • No residual value; no purchase option • Economic life of equipment: five years • Implicit interest rate and lessee's incremental borrowing rate: 5% semiannually • Fair value of the computers at January 1, 2019: $20 million Evergreen Company would account for this as a/an Question 3 options: A) sales-type lease with selling profit. B) operating lease. C) finance lease. D) sales-type lease without selling profit.