Financial Reporting - Type of Lease, Lessee Entries with Purchase Option

The following facts are for a non-cancellable lease agreement between Company A and Company B, a lessee:

The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs.

Questions:

a) Using both ASPE and IFRS prepare the journal entries for the period ended December 31, 2020 for the lessee.

b) Using both ASPE and IFRS prepare the journal entries for the period ended December 31, 2020 for the lessor.

July 1, 2020 $20,066.26 5 years 10 years Inception date Annual lease payment due at the beginning of each year, starting July 1, 2020 Lease term Economic life of leased equipment Lessor's cost Fair value of asset at July 1, 2020 Lessor's implicit rate Lessee's incremental borrowing rate Purchase option: unguaranteed residual value at end of lease term $60,000 $88,000.00 9% 9%