How Should a Fixed Asset Acquired Through a Capital Lease

How should a fixed asset acquired through a capital lease agreement be recorded in a General Fund?

A) at the present value of the future lease payments,by debiting expenditures and crediting other financing sources - capital leases
B) at the total amount of the future lease payments,by debiting expenditures and crediting other financing sources - capital leases
C) at the present value of the future lease payments,by debiting expenditures and crediting capital leases payable.
D) no entry is needed until payments are actually made on the capital lease agreement.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free