Identify whether the following transaction is a financing or an operating lease. A firm signs a $10-$year lease on $1/1/$A with annual payments of $$8,500$ beginning on $1/1/$A$.8\%$ is the appropriate interest rate. The property has a fair market value of $$70,000.$

A$.$ Financing B$.$ Operating

Identify whether the following transaction is a financing or an operating lease. A firm signs a lease on $1/1/$A with annual payments of $$13,500$ beginning on $1/1/$A$.10\%$ is the appropriate interest rate. The property has a fair market value of $$100,000.$

A$.$ Financing B$.$ Operating