$1.$ An IFRS$-$reporting airline leases a new airplane from its manufacturer for ten years. For financial reporting, the airline:

a$.$ must disclose the present value of the future lease payments if it classifies the lease as an operating lease.

b$.$ will only record an asset and a liability on its balance sheet if it classifies the lease as a finance lease.

c$.$ must record an asset and a liability on its balance sheet.

$2.$For a lessor that reports under U$.$S$.$ GAAP, a lease is classified as an operating lease if:

a$.$ the fair value of the asset is greater than the sum of the lease payments and the asset$$s expected residual value.

b$.$ ownership risks are not substantially transferred to the lessee.

c$.$ it cannot be classified as a sales$-$type lease or a direct financing lease.

$3.$ Under IFRS, a lessor retains the leased asset on its balance sheet for:

a$.$ operating leases, but not finance leases.

b$.$ finance leases, but not operating leases.

c$.$ neither finance leases not operating leases.