Fresh Fish has assets valued at $1.2 million and equity of $.98 million. The firm wants to obtain new equipment via a capital lease. The equipment costs $200,000 and the present value of the lease payments is $175,000. With the lease, firms balance sheet will show assets of ____and liabilities of ____.

$1,400,000; $1,400,000

$1,400,000; $1,155,000

$1,400,000; $1,180,000

$1,375,000; $1,375,000

$1,375,000; $1,155,000