A Company Sells a Building to a Bank in 2011

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) $20,000.
B) $50,000.
C) $100,000.
D) $150,000.
E) $200,000. Under U.S. GAAP the gain is recognized over the life of the lease. The gain for 2011 is 100,000/5= 20,000.