Dear all, I'm really confused by this question
I don't know why the answer is confirmed that It's not a transaction of selling or It's financial loan.
On 1 January 20X4, Stark entered into a sale and leaseback of its property. When it was sold,
the asset had a carrying amount of $6 million and a remaining life of 10 years Stark sold the
asset for $7 million and leased it back on a 10 year lease, paying $1 million on 31 December
each year. The lease carried an implicit interest rate of 7%.
What is the total expense that should be recorded in the statement of profit or loss for the
year ended 31 December 20X4?
$________________ ,000
Thank you very much