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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Definitions:

Drone

A remotely operated or autonomous flying machine, known as an unmanned aerial vehicle (UAV), which follows flight paths programmed through software.

Average Fixed Costs

The fixed costs of production (costs that do not change with the level of output) divided by the number of units produced.

Drones

Unmanned aerial vehicles or aircraft systems operated by remote control or onboard computers.

Drone

An unmanned aerial vehicle (UAV) operated by remote control or onboard computers, used for various purposes including photography, surveillance, and recreation.