In computing the present value of the lease payments, the lessee should use its...

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Accounting

In computing the present value of the lease payments, the lessee should
use its incremental borrowing rate in all cases.
The right-of-use asset is:
increased by initial direct costs incurred by the lessee and decreased by lease incentives received.
decreased by initial direct costs incurred by the lessee.
is not adjusted for either initial direct costs incurred by the lessee or lease incentives received.

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