A city government has a nine-year capital lease for property being used within the General Fund. The lease was signed on January 1, 2013. Minimum lease payments total $90,000 starting at the end of the first year but have a current present value of $69,000. Annual payments are $10,000, and the interest rate being applied is 10 percent. What liability is reported on the fund financial statements as of December 31,2013, after the first payment has been made?
a. $–0–,
b. $59,000.
c. $65,900.
d. $80,000
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