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 sales-type lease with a selling profit.

• A sales-type lease without a selling profit.

• Any sales-type lease.

• An operating lease.

thats exactly how the question is asked. i copy it and send it over. i dont have any other information to add. i have 2 more of the same question but at the end its reads straight- line . this one reads receivable.