The Initial Direct Costs of Leasing

question 39

Multiple Choice

The initial direct costs of leasing

• A) are generally borne by the lessee.
• B) include incremental costs related to internal activities of leasing, and internal costs related to costs paid to external third parties for originating a lease arrangement.
• C) are expensed in the period of the sale under a sales-type lease.
• D) All of the answers are true with regard to the initial direct costs of leasing.

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