Jockey city operates funaquatic park that meets the gasb definition of an enterprise fund (ef). in 2018, the ef enters into a 20-year agreement with coco's cabanas to lease shower facilities and changing rooms for the park. if the city were to buy the equipment, it would cost $320,000. assuming that the present value of the lease payments is $281,526, how should the ef initially report the lease?
select one:
a. as a debit to capital asset—cabanas and shower facilities for $281,526 and a credit to lease notes payable for the same amount.
b. as a debit to capital assets—cabanas and shower facilities for $320,000 and a credit for $281,526 to lease payable and a credit for $38,474 to deferred interest expense—leases.
c. as a debit to intangible asset—lease for $281,526 and a credit to lease payable for the same amount.
d. the leased asset and present value of the lease payments should be reported in jockey city's general fund.