In a sale-leaseback transaction, Reddy Company is the seller-lessee and Kaiser Company is the buyer-lessor. If one of the five criteria used to determine classification of the lease is met,

Select one:

a. Reddy will record the lease as an operating lease. b. Reddy will record the sale of the asset, followed by a Note Receivable.

c. If the book value of Reddy's asset is less than the cash received, Reddy records a gain.

d. Reddy will not record a gain or loss on the sale.

e. Kaiser will record the lease as a finance lease.