New municipal building office equipment costs $400,000 and is being financed with a capital lease. If the government makes a $40,000 down payment, which of the following best describes the external financial reporting effects?
a. The General Fund statements will report expenditures of $400,000 and other financing sources of $360,000 . The General Long-Term Liabilities accounts will report a liability of $360,000 and the General Capital Assets accounts will report an asset of $400,00
b. The General Fund statements will report expenditures of $40,000 and other financing sources of $360,000 . The General Long-Term Liabilities accounts will report a liability of $400,000 and the General Capital Assets accounts will report an asset of $360,000
c. The General Fund statements will report a capital asset of $400,000 and a liability of $360,000
d. The General Fund statements will report expenditures of $360,000 and other financing sources of $400,000 . The General Long-Term Liabilities accounts will report a liability of $360,000 and the General Capital Assets accounts will report an asset of $360,000
e. The General Fund statements will report expenditures and other financing sources of $40,000 . The General Long-Term Liabilities accounts will report a liability of $360,000 and the General Capital Assets accounts will report an asset of $360,000
A
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