Question: On January 1 , 2 0 1 6 , Jackson Properties leased a warehouse to Jensen Distributors. The operating lease provided for a nonrefundable bonus

On January

1, 2016,

Jackson Properties leased a warehouse to Jensen Distributors. The operating lease provided for a nonrefundable bonus paid by Jensen. Jackson should recognize the bonus in earnings:

)

At the inception of the lease.

)

When the bonus is received.

)

Over the life of the lease.

)

At the expiration of the lease.

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