Question: Initial direct costs incurred by a lessor in consummating a sales - type lease are _ _ _ _ _ _ _ _ . Charged

Initial direct costs incurred by a lessor in consummating a sales-type lease are ________.
Charged to cost of sales in the first period of the lease term
Deferred and allocated over the lease term on a straight-line basis
Deferred and allocated over the lease term in proportion to the recognition of rent revenue
Charged to unearned income in the first period of the lease term

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