Presented Below Are Three Different Aircraft Lease Transactions That Occurred

Presented below are three different aircraft lease transactions that occurred for Northwest Airways in 2017. All the leases start on January 1 2017. In no case does Northern receive title to the aircraft during or at the end of the lease period; nor is there a bargain purchase option. $$\begin{array} { l r r r } && { \text { Lessor } } \\& \text { Yale Insurance } & \text { Nexcs Leasing } & \text { Banner Leasing } \\\hline \text { Type of property } & 747 \text { Aircraft } & 727 \text { Aircraft } & \text { L-1011 Aircraft } \\\text { Yearly rental } & \$ 8,508,645 & \$ 6,357,660 & \$ 2,851,861 \\\text { Lease term } & 15 \text { years } & 20 \text { years } & 15 \text { years } \\\text { Estimated economic life } & 25 \text { years } & 25 \text { years } & 25 \text { years } \\\text { Fair value of } & & & \\\quad \text { leased asset } & \$ 80,000,000 & \$ 63,000,000 & \$ 32,000,000 \\\text { Present value of lease } & & & \\\quad \text { rental payments } & \$ 73,000,000 & \$ 54,000,000 & \$ 28,000,000\end{array}$$ Instructions
(a) Which of the above leases are operating leases and which are capital leases? Explain your answer.
(b) How should the lease transaction with Yale Insurance be recorded in 2017?
(c) How should the lease transaction with Banner Leasing be recorded in 2017?