Costs incurred by the lessor that are associated directly with originating a lease and are essential to acquire that lease are called initial direct costs.Initial direct costs are expensed at the inception of the lease in:
A)An operating lease.
B)A capital lease.
C)A direct financing lease.
D)A sales-type lease.

Question

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The Answer of Costs incurred by the lessor that are associated directly with originating a lease and are essential to acquire that lease are called initial direct costs.Initial direct costs are expensed at the inception of the lease in:
A)An operating lease.
B)A capital lease.
C)A direct financing lease.
D)A sales-type lease.

Costs Incurred by the Lessor That Are Associated Directly with Originating