Capital Leases Would Show Up on the Balance Sheet of the Firm

Capital leases would show up on the balance sheet of the firm in which manner for a six year machinery lease worth $700,000:

A) capital leases do not have to be put on the balance sheet only financial leases do.
B) Asset-Machinery $700,000; Liabilities-Long Term debt $700,000 because of debt displacement.
C) Asset-Assets under Capital Lease $700,000; Liabilities-Obligations under Capital Lease $700,000.
D) Assets-Assets under Capital Lease $700,000; Liabilities-Long Term Debt $700,000 because of debt displacement.