Assume a governmental entity enters into a capital lease for the purchase of seven new public safety vehicles. The present value of the future lease payments is $224,750, and a down payment of $25,000 is made at the inception of the lease. The net effect on fund balance of the General Fund in the year of inception is

a. a decrease of $25,000.

b. a decrease of $224,750.

c. a decrease of $199,750

d. an increase of $224,750.

e. $0.