Waterway Inc. offers boat tours around the City Reservoir. The company has signed a lease for a tour boat with an expected lifespan of six years, no estimated salvage value, and cost the leasing company $228,000. The terms of lease are as follows: . . The lease term begins on January 1, 2022, and runs for 3 years. The lease requires payments of $52,900 each January 1, starting on January 1, 2022, and each payment includes $5,000 for maintenance and insurance costs. At the end of the initial lease term, the lease can be renewed for another two years at Waterway's option for only $27,000 per year, including $1,800 for maintenance and insurance costs. The normal rental cost of a similar used boat is $32,100 per year. Waterway expects to renew the lease for the second term. At the end of the lease term, the boat is to be returned to the lessor. The lessor's implied interest rate is 5%, and Waterway uses straight-line depreciation for similar equipment. Waterway's year-end is May 31. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE Assuming that Waterway follows ASPE, identify how Waterway should classify this lease. Lease should be considered as eTextbook and Media Assuming that Waterway follows IFRS and the leases standard IFRS 16, identify the circumstances under which the lease would result in a right-of use asset capitalized on Waterway's statement of financial position. Leases would most likely be considered as