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

1. The lessee does not have ownership of the asset and the present value of lease payments equals 12% of the asset's fair value.

2. The leased asset is highly customized for the lessee's operations and would be of no use to any other business.

3. The present value of the lease payments is 95% of the leased asset's market value, and the lease term is 90% of the leased asset's useful life.