Presented below are three different lease transactions that occurred for Antisdale Inc. in 2017. Assume that all lease contracts start on January 1, 2017. In no case does Antisdale receive title to the properties leased during or at the end of the lease term. Lessor Judson Delivery Hester Co. Bau Auto Type of property Computer Delivery equipment Automobile Yearly rental $5,000 $4,200 $3,700 Lease term 6 years 4 years 2 years Estimated economic life 7 years 7 years 5 years Fair value of lease asset $27,500 $19,000 $11,000 Present value of the lease rental payments $26,000 $13,000 $ 6,400 Bargain purchase option None None None Instructions (a) Which of the leases are operating leases and which are capital leases? Explain. (b) How should the lease transaction for Hester Co. be recorded in 2017? (c) How should the lease transaction for Judson Delivery be recorded on January 1, 2017?