Betz Corporation Entered into a Capital Lease on January 1

Betz Corporation entered into a capital lease on January 1 of the current year. The lease is for 8 years and calls for the first payment to be made at the inception. The first annual minimum lease payment will contain which of the following components?

A) $\begin{array} { | c | c | } \hline \text { Interest Expense } & \text { Lease Liability } \\\hline \text { Yes } & \text { Yes } \\\hline\end{array}$
B) $\begin{array} { | c | c | } \hline \text { Interest Expense } & \text { Lease Liability } \\\hline \text { No } & \text { No } \\\hline\end{array}$
C) $\begin{array} { | c | c | } \hline \text { Interest Expense } & \text { Lease Liability } \\\hline \text { No } & \text { Yes } \\\hline\end{array}$
D) $\begin{array} { | c | c | } \hline \text { Interest Expense } & \text { Lease Liability } \\\hline \text { Yes } & \text { No } \\\hline\end{array}$