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) A sales-type lease with a selling profit.
B) A sales-type lease without a selling profit.
C) Any sales-type lease.
D) An operating lease.

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) A sales-type lease with a selling profit.
B) A sales-type lease without a selling profit.
C) Any sales-type lease.
D) An operating lease.

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