During Year 5, Taylor Corporation Signed a Long-Term Lease for a Building.It

Multiple Choice

During Year 5, Taylor Corporation signed a long-term lease for a building.It classified the lease as a capital lease and recorded it in the accounts as follows: Building ........... ..........................3,000
Capitalized Lease Obligation ..........................3,000
The transaction requires

A) inclusion in the statement of cash flows as an operating activity, only.
B) inclusion in the statement of cash flows as an investing activity, only.
C) inclusion in the statement of cash flows as a financing activity, only.
D) disclosure in a supplementary schedule or notes to the financial statements.
E) disclosure in managements' discussion and analysis.