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Mars Corporation, which uses ASPE, enters into a 8-year lease of space equipment on September 1, 2020, that requires 8 annual payments of $25,000 each,

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Mars Corporation, which uses ASPE, enters into a 8-year lease of space equipment on September 1, 2020, that requires 8 annual payments of $25,000 each, beginning September 1, 2020. The equipment has a useful life of ten years. Assume that a residual value of $16,000 is expected at the end of the lease, but that Mars does not guarantee the residual value. Assume an interest rate of 12%. Required 1) Please outline all capital lease criteria under ASPE. How should Mars classify this lease assuming it follows ASPE? 2) Prepare the September 1, 2020 journal entry. 3) Prepare the required year-end adjusting journal entry(s) at December 31 2020 4) Prepare the September 1, 2021 journal entry

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