McCormick County agreed to acquire a new recreation equipment storage facility under a lease financing agreement. At the inception of the lease, a payment of $660,000 will be made; four additional annual lease payments, each in the amount of $660,000, are to be made at the end of each year, beginning late in the current year. The total amount to be paid under this lease is $3,300,000. The lease arrangements implied an annual interest rate of 8 percent. Therefore, the present value of the lease at inception, including the initial payment, is $2,846,003. Assume that the fair value of the building at the inception of the lease is $3,036,000. Required a. Prepare entries required to record the. inception of the lease in the capital projects fund, the debt service fund, and the governmental activities journal. b. Prepare entries required to record the payment at the end of the first year of the lease in both the debt service fund and governmental activities journal. C-1. Which financial statement(s) prepared at the end of the first year would show both the asset and the liability related to this lease? C-2. What amount would the liability be reported? Required A Required B Required C1 Required C2 Prepare entries required to record the inception of the lease in the capital projects fund, the debt service fund, and the governmenta journal. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round in calculations. Round your answers to the nearest whole dollar amount.) Debit Credit Transaction Fund / Governmental General Journal Activties 1. Record the inception of the lease. 1 Capital Projects Fund Expenditures Other Financing SourcesLease Agreements Debt Service Fund Governmental Activities