On January $1,2013,$ a city entered into the following leases for equipment items. Each of the leases qualifies as a capital lease. Initial payments are on December $31,2013.$ An interest rate of $12$ percent is viewed as appropriate. No bargain purchase options exist.

Fund Annual

Payments Total

Payments Present Value

of Total Payments

General $(10-$year life$)$ $ $3,000$ $ $30,000$ $ $19,000$

Enterprise $(4-$year life$)9,00036,00030,600$