Using the Information Below Answer the Following Questions

Using the information below answer the following questions:
The operating lease is a 3-year lease commencing on 1 January 2012 with payments of $20 000 on 31 December in each of the 3 years. Assume the lease had been treated as a capital lease instead of an operating lease (using a 12% discount rate the present value of the lease payments is $48036; the company uses straight line depreciation for its capital leases) .
-If the company had recorded the lease as a capital lease instead of an operating lease:

A) total assets and total liabilities would be higher than under an operating lease
B) total assets but not total liabilities would be higher than under an operating lease
C) total liabilities but not total assets would be higher than under an operating lease
D) total assets and total liabilities would be lower than under an operating lease.