tion 2 ed out of Capital leases would show up on the balance sheet of the firm in which manner for a six-year machinery lease, worth $700,000: a. capital leases do not have to be put on the balance sheet only financial leases do. b. Assets-Assets under capital lease $700,000; Liabilities-Long term debt $700,000 because of debt displacement. c. Asset-Machinery $700,000; Liabilities-Long term debt $700,000 because of debt displacement. Od. Asset-Assets under capital lease $700,000; Liabilities-Obligations under capital lease $700,000