- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
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.
Why this is not a sale?
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.