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Text Jordan Adelson discusses how lessees should record the lease liability and right of use asset for operating and finance leases in the first day of accounting. Day 1 refers to initial recording at lease commencement, while day 2 is accounting after this. An example is given with a five-year lease, $1.1 million annual payments, a $100,000 lease incentive, and payments starting at year 1. For further details on day 2 accounting for finance leases, refer to the lessee finance lease video on CFO direct comm.