On December 31, 2008, Alliance, Inc. executed an eight-year lease with annual payments of $600,000 beginning December 31, 2009 for factory equipment. The economic life of the equipment was 12 years. The interest rate implicit in the lease was eight percent. Alliance may purchase the equipment at the end of the lease at the then-current fair market value of the equipment. The fair market value of the equipment on December 31, 2008 was $3,500,000.In its Statement of Cash Flows for the year ended December 31, 2009, Alliance should include the following related to the above transaction: —

单选题 编号：2691453

1. On December 31, 2008, Alliance, Inc. executed an eight-year lease with annual payments of $600,000 beginning December 31, 2009 for factory equipment. The economic life of the equipment was 12 years. The interest rate implicit in the lease was eight percent. Alliance may purchase the equipment at the end of the lease at the then-current fair market value of the equipment. The fair market value of the equipment on December 31, 2008 was $3,500,000.
In its Statement of Cash Flows for the year ended December 31, 2009, Alliance should include the following related to the above transaction:

A.Cash flow from operations of -$280,000,cash flow from financing of -$320,000.
B.Cash flow from operations of -$320,096,cash flow from financing of -$279,904.
C.Cash flow from operations of -$275,839,cash flow from financing of -$324,161.

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