Question: The right-of-use asset is increased by A) Initial direct costs incurred by the lessee only. B) Lease incentives received. C) Prepaid lease payments only. D)

The right-of-use asset is increased by

A) Initial direct costs incurred by the lessee only.

B) Lease incentives received.

C) Prepaid lease payments only.

D) Lease prepayments made by the lesee and initial direct costs incurred by the lessee.

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