Fox Co. leases equipment and prepays Owl Co. $135,000, lease payments for the entire 9-month lease starting on March 1, 2020, plus $15,000 as a security deposit. If lessee makes the proper lease election, what are the financial statement effects oflessee'sfirstadjustingentry for this lease onJuly 31, 2020(Fox's fiscal year-end)?

Group of answer choices

A: DL: NESE: DNI: NECFs: NE

A: DL: NESE: DNI: DCFs: NE

A: DL: DSE: NENI: NECFs:NE

A: DL: NESE: DNI: DCFs: D