49. A police department leases a car on July 1, Year 1, with five annual payments of$20,000 each. It imme¬ diately makes the first payment, and the present value of the annuity due is $78,000 based on an assumed rate of 10 percent. The car has a five-year life. Assume that this is a capitalized lease. Indicate whether each of the following independent statements is true or false and briefly explain each answer.

a. The fund-based financial statements will show a total liability of $3,900 at the end ofYear 1.

b. The government-wide financial statements will show a total liability of $58,000 at the end of Year 1.

c. The government-wide financial statements will show total interest expense of $2,900 in Year 1.

d. The fund-based financial statements will show total expenditures of $20,000 in Year I.

e. The government-wide financial statements will show a net leased asset of $70,200 at the end of Year 1.

f If this were an ordinary annuity so that the first payment was made in Year 2, no expenditure would be reported in the fund-based financial statements in Year 1.

g. If the car had an eight-year life, this contract could not be a capitalized lease.

h. Over the entire life of the car, the amount of expense recognized in the government-wide finan¬ cial statements will be the same as the amount of expenditures recognized in the fund-based financial statements.