A lease for a communications system that has a 6 year life is signed on January 1, year 1, with 6 annual payments of 16,500. The police department will use the communications system. The first payment is to be made immediately. The present value of the 99,000 in cash flows is 71,862 based on a 10% rate. Fund financial statements for year 1 should report total expenditures of 16,500. Is this true or false