Burgess Limited Accepts a Lease Incentive to Enter into a 3-Year

Burgess Limited accepts a lease incentive to enter into a 3-year operating lease for a building.The incentive is a cash amount of $5000 received on signing of the lease agreement.The lessee initially records this transaction as follows:

A) DR Lease expense $5000 CR Cash $5000
B) DR Incentive from lessor $5000 CR Cash $5000
C) DR Incentive to lessee $5000 CR Rent income $5000
D) DR Cash $5000 CR Lease incentive from lessor $5000.

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