(Solution) - Blane Inc entered into a five year lease of equipment from -(2025 Original AI-Free Solution)

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Blane Inc. entered into a five-year lease of equipment from Zdrinka Inc. At the lease's inception, it is estimated that the equipment has an economic life of eight years and fair value of $250,000. Present value of minimum lease payments amounts to $215,606.50. The lease does not transfer title or contain a bargain purchase option.
(a) Assume that Blane follows IFRS. How should Blane classify this lease?
(b) Assume that Blane follows ASPE. How should Blane classify this lease?