A Government Entered into a General Government Capital Lease for Equipment

A government entered into a general government capital lease for equipment during the year. The capitalizable cost of the equipment was $400,000. A down payment of $40,000 was made. The General Fund should report in its statement of revenues, expenditures, and changes in fund balance an

A) Other financing use of $400,000.
B) Expenditure of $360,000.
C) Other financing source of $400,000.
D) Other financing source of $360,000.