The City of Clear Lake signed a lease agreement with Mountainside Bulders whereby Mountainside will construct o new olfice bulding for city odministrotive use and lease it to the City for 30 years. The fair market value of the building is $12 million. The City has agreed to make an initial payment of $822.441 and annual payments in the same amount for the next 29 years. (This assumes a 6 percent discount rate). The lease includes a funding clause. which allows Clear Lake to terminate the lease agreement if the government does not appropriate funds for the lease payments. Clear Lake does not intend to exercise this option unless there is a financial emergency, Upon completion, the building had on appraised value of $13 milition and an estimated useful life of 40 years. Required a. Provide joumal enties the city should moke for both the copital projects fund and govemmental activities ot the government-wide level to record the lease at the date of inception. (If no entry is required for a transoction/event, select "No Journal Entry Required' in the first account field. Enter your onswers in whole dollors, not in millions.) b. Which financid stotement(s) prepored ot the end of the first year would show both the osset and the liability related to this capital leose? Gohemment wide stotements of comprebensive income Government wide stotemeats of net postion Government wide stotements of profit or loss Goveroment wide statements of revenve and expenditure