1. In a sale-leaseback transaction, a gain resulting from the sale should be deferred at the time of the sale-leaseback and subsequently amortized when:
I. The seller-lessee has transferred substantially all the risks of ownership.
II. The seller-lessee retains the right to substantially all of the remaining use of the property.
(a) I only.
(b) II only.
(c) Both I and II.
(d) Neither I nor II.
2. At the inception of a capital lease, the guaranteed residual value should be:
(a) Included as part of minimum lease payments at present value.
(b) Included as part of minimum lease payments at future value.
(c) Included as part of minimum lease payments only to the extent that guaranteed residual value is expected to exceed estimated residual value.
(d) Excluded from minimum lease payments.