In each of the following separate cases, indicate whether the company has a finance lease or an operating lease.

1. The lessee can purchase the leased asset for a minimal $5 payment at the end of the lease, and the lease term is for a major part of the asset's remaining economic life.
2. The lease term is 5% of the leased asset's useful life and there is no option for the lessee to purchase the asset.
3. The lessor retains title to the asset, and the lease term is 3 years on an asset that has a 10-year useful life.

In each of the following separate cases, indicate whether the company has a finance lease or an operating lease. 1. The lessee can purchase the leased asset for a minimal $5 payment at the end of the lease, and the lease term is for a major part of the asset's remaining economic life. 2. The lease term is 5% of the leased asset's useful life and there is no option for the lessee to purchase the asset. 3. The lessor retains title to the asset, and the lease term is 3 years on an asset that has a 10-year useful life. 1. The lessee can purchase the leased asset for a minimal $5 payment at the end of the lease, and the lease term is for a major part of the asset's remaining economic life. 2. The lease term is 5% of the leased asset's useful life and there is no option for the lessee to purchase the asset. 3. The lessor retains title to the asset, and the lease term is 3 years on an asset that has a 10-year useful life.