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A lease includes variable lease payments. The lessee knows the amount of the variable lease...

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Accounting

A lease includes variable lease payments. The lessee knows the amount of the variable lease payments at the inception of the lease. How should the lessee account for the payments?

Group of answer choices

Variable lease payments should be expensed in the period incurred.

Variable lease payments should be paid by the lessor as a lease incentive.

Variable lease payments should be included at their gross amount in the lease liability.

The variable lease payments should be included at their present value in the lease liability.

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