If a sales$-$type lease results in the lessor reporting a loss,

the lessor recognizes sales revenue and cost of goods sold.

the lessor will not derecognize the asset and will record lease revenue for payments received from the lessee until the loss

is absorbed$.$

the lessor will derecognize the asset but will defer recognition of the loss until the lease payments equal to the historical

cost of the asset have been received.

the lessor will derecognize the asset but will defer recognition of the loss until the lease payments equal to the fair value $o$

the asset have been received.