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If the Leaseback Portion of a Sale-Leaseback Transaction Is Classified

Question 146

Multiple Choice

If the leaseback portion of a sale-leaseback transaction is classified as an operating lease:


A) Any gain is deferred and recognized as a reduction of rent expense.
B) Any gain is deferred and recognized as a reduction of depreciation.
C) Any gain is recognized at the lease's inception.
D) There can be no gain.

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