In a sale-leaseback transaction where none of the four leasing criteria are satisfied, which of the following is false?
A) The seller-lessee removes the asset from its books.
B) The purchaser-lessor records a gain.
C) The seller-lessee records the lease as an operating lease.
D) All of the answers are false statements.

Question

Quizplus · Accepted Answer

In a sale-leaseback transaction where none of the four leasing criteria are satisfied, the purchaser-lessor does not record a gain. Instead, the transaction is treated as a financing arrangement.

In a Sale-Leaseback Transaction Where None of the Four Leasing