A Company Sells a Building to a Bank in 2011

question 42

Multiple Choice

A company sells a building to a bank in 2011 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 2011 using IFRS?

• A) $20,000.
• B) $50,000.
• C) $100,000.
• D) $150,000.
• E) $200,000. Under IRFS the entire gain is recognized in 2011.

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Definitions:

Action Potential

A rapid rise and fall in electrical potential across a cell's membrane, enabling the transmission of signals along neurons.

Threshold Level

The minimum level of stimulus intensity required to activate a neuron or to trigger a specific physiological response.

Repolarization Phase

Phase of the action potential in which the membrane potential moves from its maximum degree of depolarization toward the value of the resting membrane potential.

Voltage-gated Ion Channels

Proteins embedded in cell membranes that open or close in response to changes in membrane potential, crucial for the propagation of nerve impulses.