Practice Problems Practice Problem 3 (25 minutes) On January 1, 2020, Amira's Stables Corp., which reports its financial results in accordance with ASPE, entered into a contract to lease a tractor, details of which follow 2 years 5 years $7,000 first due January 1, 2020 $15,000 Lease term Economic life of equipment Lease payment FV of asset Implicit rate in the lease (not known by lessee) 4% Incremental borrowing rate Option to purchase Guaranteed residual value 6% No No Amira uses the straight-line method of depreciation for its assets. Required: a) Using the issue analysis-recommendation (IAR) approach, determine if Amira Stables should classify the lease as a capital lease or an operating lease by evaluating the four primary ASPE criteria. b) Prepare all journal entries for Amira Stables related to the lease for its year ended December 31, 2020, including the entry at the inception of the lease, the lease payment, and any adjusting journal entries at year end