Question number 18: Annex Co transferred title to a plot of land with a carrying amount of $750,000 and fair value of $5 million to The Bricks Bank for $2 million on 1 December 20X6. The Brick Bank agreed to lease the land back to Annex Co for ten years for an annual rental of $250,000.
Because we do not have the ability to have all of the remaining benefits given that we only lease it back for 10 years. Land has an infinite life, so would not be sale.