Question: 28. Initial direct costs incurred by the lessor under a salestype lease should be a. Deferred and allocated over the economic life of the leased

28. Initial direct costs incurred by the lessor under a salestype lease should be

a. Deferred and allocated over the economic life of the leased property.

b. Expensed in the period incurred.

c. Deferred and allocated over the term of the lease in proportion to the recognition of rental income.

d. Added to the gross investment in the lease and amortized over the term of the lease as a yield adjustment.

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