In the associated cells, indicate whether each of these agreements is an operating lease, finance lease, or short-term lease.7. Gilliam rents a fax machine for a ten-month period with no option to extend. 8. Gilliam rents equipment for 8 years. The life of the equipment is 12 years. The fair value of the equipment is $120,000. The present value of the minimum lease payments is $105,000. 9. Gilliam rents equipment from lessor. At the end of lease term there is no alternative use for the leased asset, 10. Gilliam rents a fax machine for a ten-month period with an option to extend to 18-months. The option is reasonably certain to be excercised by Gilliam. None of the 5 lease classification tests are met.