1a. A company leases a piece of equipment for five years. As with all leases, ownership remains with the lessor during the duration of the lease. Briefly discuss whether this leased equipment meets the definition of an asset.

1b. A company has provided employees with sick days for a number of years. The policy states that sick days accumulate but do not vest. Briefly discuss whether the cost associated with the days accumulated by employees at the end of the fiscal year meets the definition of a liability.