25. Each of the four independent situations below describes a lease requiring annual lease payments of $30,000. Situation 2 3 4 Lease term Iyears) 8 8 8 8 Asset's useful life (years) 12 12 10 12 Asset's fair value $132.000 $123.000 $129.000 $117.000 Bargain purchase option No No Yes No Annual lease payments Beg of Beg olyr. End of yr End of yr Lessor's implicit rate known by 5% 59 796 lessee) Lessee's incremental borrowing 5% 5% 5% 596 tate y. Required: For each situation, determine the appropriate lease classification by the lessee and indicate why each of the four criteria for classification as a capital lease do or do not apply