[Anonymous]

1.) Can someone explain how you know whether to recognize immediately or defer the gain/loss from a sale-leaseback transaction?

I know that FASB ASC 840-40-25-4 provides that if the lease meets one of the criteria for capital lease treatment, then any gain on the sale should be deferred and amortized.

2.) In determining the gain/loss for a sale-leaseback and a sales type lease, do you do carrying amount vs. selling price? Or carrying amount vs. PV of minimum lease payments?

Thanks for your help! 🙂