The amount of gain (loss) on sale and leaseback transaction is: A. The difference of fair value and carrying of the underlying asset. B. The difference of the fair value of rights retained by the lessee and the carrying value of right-of use asset. C. The difference of the fair value of rights retained by the lessee and the carrying value of rights transferred to the lessor. D. The difference of the fair value of rights transferred to the lessor and carrying value of rights transferred to the lessor.
The amount of gain (loss) on sale and leaseback transaction is: A. The difference of fair value and carrying of the underlying asset. B. The difference of the fair value of rights retained by the lessee and the carrying value of right-of use asset. C. The difference of the fair value of rights retained by the lessee and the carrying value of rights transferred to the lessor. D. The difference of the fair value of rights transferred to the lessor and carrying value of rights transferred to the lessor.
Chapter12: Nonrecognition Transactions
Section: Chapter Questions
Problem 3DQ
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The amount of gain (loss) on sale and leaseback transaction is:
A. The difference of fair value and carrying of the underlying asset.
B. The difference of the fair value of rights retained by the lessee and the carrying value of right-of use asset.
C. The difference of the fair value of rights retained by the lessee and the carrying value of rights transferred to the lessor.
D. The difference of the fair value of rights transferred to the lessor and carrying value of rights transferred to the lessor.
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