A Government Enters into a Capital Lease for the Purchase

A government enters into a capital lease for the purchase of a new fire truck.The present value of the future lease payments is $745,500 and there is a down payment at the inception of the lease of $25,000.The fire truck should be recorded in the General Fund at

A) $25,000.
B) $770,500.
C) $745,500.
D) $0.