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Initial direct costs are a.costs incurred by a lessee that are directly associated with negotiating and arranging a lease. b.expensed in the year of incurrence
Initial direct costs are
a.costs incurred by a lessee that are directly associated with negotiating and arranging a lease.
b.expensed in the year of incurrence by the lessor in a financing-type lease.
c.spread over the term of a sales-type lease by the lessee.
d.deferred and allocated over the term of an operating lease in proportion to the amount of rental (lease) income that is recognized.
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