On December 31, 2009, B Corp. sold a machine to Royal and simultaneously leased it back for one year. Pertinent information at this date follows: In B's December 31, 2009, balance sheet, the deferred revenue from the sale of this machine should be

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Quizplus · Accepted Answer

Since the leaseback is for only one year, it is considered an operating lease. In an operating lease, the sale is recognized, and there is no deferred revenue.