Which of the following is correct with respect to a non-cancellable lease agreement for purchase of equipment by an enterprise fund? I) It should capitalize the equipment at its fair value and create a lease liability for the same amount. II)Recognize the amount of installment as expenditure in the period it is paid. III)Interest on the principal amount should be recognized as an expense in the period to which it pertains to. I and II only. I and III only. II only. Neither I, II or III.
