Three different lease transactions are presented below for Sunland Enterprises. Assume that all lease transactions start on January 1, 2021. Sunland does not receive title to the properties, either during the lease term or at the end of it. The yearly rental for each of the leases is paid on January 1 starting on January 1, 2021. Sunland Enterprises prepares its financial statements using ASPE.

		Manufacturing Equipment			Vehicles		Office Equipment
Lease term		5 years			6 years		3 years
Estimated economic life		15 years			7 years		6 years
Yearly rental payment		$15,390			$16,043		$3,615
Fair market value of leased asset		$106,370			$82,330		$16,790
Present value of lease rental payments		$56,050			$72,493		$9,580

(a)

Which of the below leases are operating leases and which are capital leases?

Manufacturing Equipment
Vehicles
Office Equipment