REFERENCE: Ref.11_05 A Company Sells a Building to a Bank in 2008

question 50

Multiple Choice

REFERENCE: Ref.11_05
A company sells a building to a bank in 2008 at a gain of $100,000 and immediately leases the building back for period of five years.The lease is accounted for as an operating lease.The building was originally purchased for $200,000 and currently has a book value of $50,000.
-What amount should be recognized as a gain in 2008 using IFRSs?

• A)$20,000.
• B)$50,000.
• C)$100,000.
• D)$150,000.
• E)$200,000.

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Definitions:

Beck

Aaron Beck, a prominent psychologist known for his work in cognitive therapy, particularly in relation to depression, and the development of the cognitive-behavioral therapy approach.

Ruminative Responses

The tendency to compulsively focus on the causes and consequences of one's distress rather than taking action to relieve it.

Mentally Dwelling

The act of continuously thinking about or fixating on a certain thought or problem without reaching a resolution.

Mood

A temporary state of mind or feeling.