LAS Owns a Building in North Bay

question 112

Multiple Choice

LAS owns a building in North Bay.LAS enters into an agreement with BH as follows: LAS sells the building to BH on 1/1/2014 for $2,900,000 (which was the building's fair value on that date) and immediately leases it back for $500,000 per year for 10 years.The historical cost of the building was $9,000,000 and accumulated amortization amounted to $7,000,000.Part of the journal entry to record these transactions would include:

• A)a credit to building for $900,000.
• B)a credit to gain on sale for $900,000.
• C)a credit to lease liability for $900,000.
• D)a credit to deferred gain for $900,000.

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Definitions:

Direct Forecast

predicts future trends or behaviors directly from past and present data without the use of intervening variables.

Indirect Forecast

A forecasting method that uses related indicators or market conditions, rather than direct measures, to predict future trends or demands.

Buyers' Intentions Forecast

The process of predicting future purchasing actions of consumers based on various indicators and market trends.

Sales Forecast

A projection of future sales revenue, often based on historical data, market analysis, and expected market trends.