Choice "A" is correct. Recognition of a gain resulting from the sale in a sale-leaseback should be deferred when the seller-lessee retains the right to substantially all of the remaining use of the property (as in a capital lease).
Choice "d" is incorrect. When the seller-lessee transfers substantially all the risks of ownership (as in a true sale), any gain resulting from the sale should be recognized immediately.
Choice "b" is incorrect. When the seller-lessee transfers substantially all the risks of ownership, any gain resulting from the sale should be recognized rather than being deferred.
Choice "c" is incorrect. Recognition of the gain should be deferred when the seller-lessee retains the right to substantially all of the remaining use of the property.
