Question

Additional lease adjustments that affect the measurement of lease assets and liabilities include each of the following except?

initial direct costs.

internal costs.

executory costs.

lease prepayments and incentives.

Answer 1

Additional lease adjustments that affect the measurement of lease assets and liabilities include initial direct costs, internal costs, and executory costs. Lease prepayments and incentives are not considered as additional lease adjustments.

Step-by-step explanation:

The additional lease adjustments that affect the measurement of lease assets and liabilities include initial direct costs, internal costs, and executory costs. Lease prepayments and incentives are not considered as additional lease adjustments that affect the measurement of lease assets and liabilities.