Betz Corporation entered into a capital lease on January 1 of the current year. The lease is for 8 years and calls for the first payment to be made an the inception. The first annual minimum lease payment will contain which of the following components?

A)
Interest Expense
Lease Liability
Yes
Yes

B)
Interest Expense
Lease Liability
No
No

C)
Interest Expense
Lease Liability
No
Yes

D)
Interest Expense
Lease Liability
Yes
No

Answer: C