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Sometimes a Lease Might Specify That Lease Payments May Be

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Sometimes a lease might specify that lease payments may be increased (or decreased) at some future time during the lease term depending on whether or not some specified event occurs such as revenues or profits exceeding some designated level. Under what circumstances are contingent rentals included or excluded from lease payments? If excluded, how are they recognized in income determination?

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Contingent rentals are considered variab...

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