11. A company sells an office building that has appreciated in value and subsequently enters into a lease for the space. Which of the following statements is an accurate description of both the impact, and the cause of the impact, that the sale-leaseback transaction will have on the companys income statement?

(A) Increased interest expense due to the new lease

(B) Higher taxable income will occur in year of sale because of a gain on sale

(C) Cash flow will increase because the mortgage has been paid off

(D) Higher taxable income will be realized because lease payments are not deductible