Bonita Inc. leased a new crane to Swifty Construction Inc. under a six-year, non-cancellable contract starting Feb 1, 2020. The lease terms require payments of $22,500 each Feb 1, startinf Feb 1 2020. Bonita will pay insurance and repair and maintenance charges on the crane, which has an estimated life of 12 years, a fair value of $160,000, and a cost to Bonita of $160,000. The crane's estimated fair value is $50,000 at the end of the lease term.No bargain purchase or renewal options are included in the contract. Both Bonita and Swifty have calendar year ends and use IFRS 16. Collectibility of the lease payments is reasonably certain and there are no uncertainties about unreimbursable lessor costs. Swifty's incremental borrowing rate is 8% and Bonita' implicit interest interest rate of 7% is known to swifty.

Would the classification of the lease have been different if Bonita and Swifty had been using ASPE? Yes or No

Prepare all the entries related to the lease contract and leased asset for the year 2020 for the lessee and lessor, assuming the following executory costs: insurance of $450 covering the period february 1, 2020, to January 31, 2021 and a one-year maintenance contract begining february 1, 2020 costing $1320. Straight-line depreciation is used for similar leased assets. The crane is expected to have a residual value of $21,000 at the end of its useful life.

Below is the required amount of entries that must be filled in. Thank you for your help!

Hesser's Cnfries Troprecord inctotion of hase and finst lube pipment. (fo record hoeres.) (To record depreciation ewtrie.) Lessor's Entries Account Titles and Explanation Debit Credit (Collection of rent.) (To record prepayments.) (To record rent revenue.) (To record expired prepayments.) Hesser's Cnfries Troprecord inctotion of hase and finst lube pipment. (fo record hoeres.) (To record depreciation ewtrie.) Lessor's Entries Account Titles and Explanation Debit Credit (Collection of rent.) (To record prepayments.) (To record rent revenue.) (To record expired prepayments.)