The following are some of the characteristics of an asset available for lease: January 1, 2019 Inception date of lease Fair value of leased asset $100,000 15 years Useful life 5 years Lease term $13,000 Payment amount Annual Payment frequency Beginning of year Payment timing Residual value at end of lease term (unguaranteed) $50,000 7% Interest rate implicit in the lease (not known by the lessee) Lessee's incremental borrowing rate 8% December 31 Company year end Depreciation method Straight-line Assume that the lessee applies ASPE. 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.