Manning Co. (lessee) has the following current lease liabilities at the end of Year 7: Lease A finance lease, 5 years, lease liability $125,000 Lease B operating lease, 3 years, lease liability $65,000 How should Manning present the lease liabilities on its balance sheet?

A. The finance lease liability, not the operating lease liability, must be presented separately from other liabilities on the balance sheet.

B. Finance and operating lease liabilities may be presented with other liabilities on the balance sheet.

C. Finance and operating lease liabilities must be presented separately from each other and other liabilities on the balance sheet.

D. Finance and operating lease liabilities may be presented together in the same line item on the balance sheet.