The lessee, under ASPE, records a capital lease as an asset and a liability at the

total amount of the lease payments.

present value of the lease payments.

lower of the present value of the lease payments and the fair market value of the leased asset.

fair market value of the leased asset at the lease inception.

2.

Retiring debt by issuing equity securities would be

included in financing activities.

included in both investing and financing activities.

reported only as a note to the statement of cash flows.

included in investing activities.