On January 1, Year 1, Amira Stables Corp. (Amira), which reports its financial results in accordance with ASPE, entered into a contract to lease a tractor from a leasing company, details of which follow: Lease term Economic life of equipment Lease payment Fair value of asset Implicit rate in the lease (not known by lessee) Incremental borrowing rate Option to purchase Guaranteed residual value 2 years 5 years $7,000 first due January 1, Year 1 $15,000 4% 6% No No Amira uses the straight-line method of depreciation for its assets. Required: a) Using the issue-analysis-recommendation (IAR) approach, determine if Amira should classify the lease as a capital lease or an operating lease by evaluating the three primary ASPE criteria. b) Prepare all journal entries for Amira related to the lease for its year ended December 31, Year 1, including the entry at the inception of the lease, the lease payment, and any adjusting journal entries at year end