On January 1, 2010, Columbus Properties Sold a Building to Another

Multiple Choice

On January 1, 2010, Columbus Properties sold a building to another company and immediately leased it back again.The Columbus' book value for the building was $15, 954.The lease was for five years with $5, 000 payable at the end of each year.The payments, discounted at 10%, equaled $18, 954.Which entry would Columbus Properties not make in 2010?

A)
$\begin{array} { l } \text { Depreciation Expense: Leased Asset } \quad 3,790 \\\text { Accumulated Depreciation: } \\\text { Leased Asset } \quad \quad3,790 \\\end{array}$
B)
$\begin{array} { l r } \text { Cash } & 18,954 \\\text { Building } & 15,954 \\\text { Profit on Sale-Leaseback } & 3,000\end{array}$
C)
Leased Equipment Under Capital Leases $\quad 18,954$
Obligation Under Capital Leases $\quad 18,954$
D)
$\begin{array} { l c } \text { Obligation Under Capital Leases } & 3,105 \\\text { Interest Expense } & 1,895 \\\text { Cash } & 5,000\end{array}$