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?