Consider each scenario below, and classify each type of lease from the perspective of the lessor:

Case A 

On 15 March 20X5, Edaby Inc. (Lessor) enters into an arrangement with Telemin (Lessee) to lease some electronic equipment. The lease term is 4 years, and payments of $5,230 are due on 1 April each year. The rate implicit in the lease is 8.8%. The equipment has a 10-year useful life. The estimated fair value of the equipment is $35,000. At the end of the lease term, the asset reverts to Edaby Inc.
Case B 

Sharpist is a car dealer that sells new cars to customers. Either the customers can purchase the cars using cash or Sharpist will provide lease alternatives to customers. On 28 December 20X4, Sharpist leased a car to Quifil Ltd. The lease term is 6 years, with annual payments of $8,400 due at the beginning of the year. The first payment is due 1 January 20X5. The rate implicit in the lease is 8.25%. The car is carried on Sharpist’s booked at a cost of $37,000. The unguaranteed residual avalue at the end of the lease is $4,000 with 2 years of useful life remaining. There were no material cost uncertainties at the inception of the lease.
Case C 

On 3 January 20X5, Jumpin Inc. (Lessor) enters into a lease arrangement with Cordle Corporation (Lessee) to lease a piece of manufacturing equipment. Jumpin purchased the equipment for $86,400, which is considered to be the fair value. Lease payments are $24,900 per year, due at the beginning of the year. The lease term is 4 years. The equipment has no residual value at the end of the lease term. The rate implicit in the lease is 10.39%.

Required:
For each scenario:
1. Determine how to classify each type of lease: operating, financing, or manufacturer/dealer. Explain your reasoning.
2. Prepare the journal entries for the first year of the lease, assuming each company has a 31 December year-end. For financing-type leases, use the net method.
3. Explain the accounting under ASPE.