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 added to the Lease Receivable 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 added to the Lease Receivable 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