A Government Signed a Five-Year Capital Lease on January 1,2012

A government signed a five-year capital lease on January 1,2012 to obtain some equipment.The lease provided that the government would make a down payment of $10,000 and four $10,000 payments each year after that,beginning January 1,2012.The government has a fiscal year ending December 31.Upon inception of the lease,the government,in its governmental fund accounting records would:

A) Debit expenditures for $10,000 and credit cash for $10,000.
B) Debit expenditures for $50,000, credit cash for $10,000, and credit accounts payable for $40,000.
C) Debit expenditures for the present value of the payments (including the $10,000) , credit cash for $10,000, and credit accounts payable for the difference between the $10,000 and the present value of the future payments.
D) Debit expenditures for the present value of the payments (including the $10,000) , credit cash for $10,000, and credit other financing sources for the difference between the $10,000 and the present value of the future payments.