The costs that (a) are associated directly with consummating a lease, (b) are essential to acquire the lease, and (c) would not have been incurred had the lease agreement not occurred, are referred to as initial direct costs. Initial direct costs are expensed at the beginning of the lease in:
A) An operating lease.
B) A sales-type lease with selling profit.
C) A sales-type lease with no selling profit.
D) Both an operating lease and a sales-type lease with no selling profit.

Question

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The Answer of The costs that (a) are associated directly with consummating a lease, (b) are essential to acquire the lease, and (c) would not have been incurred had the lease agreement not occurred, are referred to as initial direct costs. Initial direct costs are expensed at the beginning of the lease in:
A) An operating lease.
B) A sales-type lease with selling profit.
C) A sales-type lease with no selling profit.
D) Both an operating lease and a sales-type lease with no selling profit.

The Costs That (A) Are Associated Directly with Consummating a Lease