At the beginning of the current year, a county government enters a 3-year lease with these terms: $100,000 is due at signing, and payments of $100,000 per year are due at the end of each of the next two years. The lease agreement carries an interest rate of 3.5%. The present value of the total lease payments is $289,969. If appropriate, the leased asset is straight-line depreciated. Assume the lease is reported in the general fund. At the start of the lease, the general fund: 

a. Records $289,969 as a long-term asset. 

b. Records $100,000 in other financing sources.

 c. Records expenditures of $289,969.

d. Records $300,000 in other financing uses

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