Case 13-1 Recording an Operating lease Noel Company leases 25 cell phones for three years. The rent for the phones is $1,700 a month for 36 months ($61,200 in total). The fair value of the leased phones is $65,000. Noels has an 5.5% incremental borrowing rate and the PV of the lease payments is $56,557.

Required:

1. How would Noel have recorded this transaction under SFAS No. 13?
2. How should Noel record this transaction under FASB ASC 842?