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Which of the Following Statements Is Correct

Question 52

Multiple Choice

Which of the following statements is correct?


A) In a direct-financing lease, initial direct costs are added to the net investment in the lease.
B) In a sales-type lease, initial direct costs are expensed in the year of incurrence.
C) For operating leases, initial direct costs are deferred and allocated over the lease term.
D) All of these answer choices are correct.

Correct Answer:

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