ABC Company sold equipment on October 1, 2018, to XYZ Company for 1,000,000. It agrees to repurchase this equipment in July 2019, for a price of 1,100,000.

1-sales revenues that must be recorded for 2018 are:

Select one:

a. $1,000,000

b. $1,100,000

c. $0

d. $900,000

2-The proper accounting treatment for this transaction based on , Select one:

a. substance over form

b. going concern

c. relevance

d. comparability