The lease payments for the company car, used mainly by the VP of sales for visiting clients, are incorrectly recorded under VehiclesLeased. The monthly payments are $400 and began on May 1, 2019, for a three-year lease. (Note: only the first 10 months of payments had been made by March 31, 2020.) If PHL had purchased the car, it would have cost $30,000. The car has an expected useful life of six years.

The companies year end is March 30 2020.

In accordance with ASPE, is this transaction properly recorded? If yes please explain how. If no, please explain why its wrong and how to fix it.