The A.S.P.E P17-12. Accounting for leasesASPE L.O. 17-1, L.O. 17-2) (Medium - 10 minutes) The following are some of the characteristics of an asset available for lease: Inception date of lease Fair value of leased asset Useful life Lease term Payment amount Payment frequency Payment timing Residual value at end of lease term (unguaranteed) Interest rate implicit in the lease (not known by the lessee) Lessee's incremental borrowing rate Company year end Depreciation method Assume that the lessee applies ASPE. January 1, 2019 $100,000 15 years 5 years $13,000 Annual Beginning of year $50,000 7% 8% December 31 Straight-line Required: a. Evaluate whether the lessee should account for this lease as a capital lease or an operating lease. b. Prepare the lessee's journal entries for the lease for 2019 and January 1, 2020