If a sale and leaseback transaction results in a finance lease, any excess of sale proceeds over the carrying amount shall be I. Recognized immediately as income by the seller-lessee. II. Deferred and amortized as income by the seller-lessee over the lease term. Either I or II II only I only Neither I nor II
If a sale and leaseback transaction results in a finance lease, any excess of sale proceeds over the carrying amount shall be I. Recognized immediately as income by the seller-lessee. II. Deferred and amortized as income by the seller-lessee over the lease term. Either I or II II only I only Neither I nor II
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If a sale and leaseback transaction results in a finance lease, any excess of sale proceeds over the carrying amount shall be
I. Recognized immediately as income by the seller-lessee.
II. Deferred and amortized as income by the seller-lessee over the lease term.
I. Recognized immediately as income by the seller-lessee.
II. Deferred and amortized as income by the seller-lessee over the lease term.
Either I or II
II only
I only
Neither I nor II
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