A Company Sells a Building to a Bank in 2013

question 35

Multiple Choice

A company sells a building to a bank in 2013 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 had a book value of $50,000 at the date of the sale.
What amount should be recognized as a gain in 2013 using IFRS?

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

---

Definitions:

Subcultures

Groups within a larger culture that distinguish themselves through unique beliefs, values, and practices.

Lifestyles

The aggregate of choices, behaviors, and habits of an individual or group, including consumption patterns, leisure activities, and values, which reflect socio-economic status and preferences.

Fragmentation

The process or state of breaking or being broken into small or separate parts.

Malthus's Theory

A principle positing that population growth tends to outpace agricultural production, leading to scarcity, famine, and social strife.