Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 6

Ilmanov Ltd. sold a building to a bank at the beginning of 2015 at a gain of $76,000 and immediately leased the building back for a period of four years. The lease is accounted for as an operating lease.
a. Determine the amount of gain on the sale and leaseback that Ilmanov should recognize in 2015 under (1) U.S. GAAP and (2) IFRS.
b. Determine the adjustments that Ilmanov would make in 2015 and 2016 to reconcile net income and stockholders' equity under U.S. GAAP to IFRS.