Laperla county entered into a capital lease on june 30, 20x8, for equipment to be used by general fund departments. the capitalizable cost of the leased asset was $200,000. an initial payment of $20,000 was made at the inception of the lease. the first annual lease payment of $35,000 was due and paid on july 1, 20x9. assume a 6% implicit rate of interest on the lease.1. general fund expenditures in the scal year ended december 31, 20x8, would be
a. capital outlay expenditures of $20,000.
b. capital outlay expenditures of $200,000.
c. capital outlay expenditures of $200,000 and interest expenditures of $5,400.
d. rent expenditures of $20,000 and no capital outlay or debt service expenditures.
2. laperla county should report general fund expenditures for the scal year ended december 31, 20x9, in the amount of
a. rent expenditures of $35,000.
b. interest expenditures of $35,000.
c. principal retirement expenditures of $35,000.
d. interest expenditures of $10,800 and principal retirement expenditures of $24,200.