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 in 2011 as a gain on the sale using U.S. GAAP?

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The Answer of 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 in 2011 as a gain on the sale using U.S. GAAP?

A Company Sells a Building to a Bank in 2011