If an operating lease has all incentive money to fix up the space built into the sq. ft. cost, is it straight lined already? To be clearer, the lease is for 5 years at the same cost every month for the entire term. The $1MM of incentive money is baked into the lower cost per square foot. Based on GAAP an operating lease must be straight lined over its life, which should include incentive money, free rent periods and increases over its term. I don't have any of these in this question, because they're already baked into the lower cost per sq. ft. Is this lease already straight lined and therefore no deferred rent entry to the balance sheet is necessary?

No