Morel sold an item of inventory to a bank on 1 September 2020 for 500,000. At this date the inventory had cost 200,000 to produce and had a market value of 900,000, which was expected to increase over the next 3 years. At the end of 3 years, Morel has the option to repurchase the inventory at 665,000. Which of the following statements is/are correct regarding the recording of the sale in Morels financial statements for the year ended 31 August 2021? i. Revenue of 500,000, cost of sales 200,000 ii. 200,000 of inventory should be removed from the statement of financial position iii. Deferred income of 500,000 should be recongised

a. (iii) only

b. (i) only

c. (i) and (ii)

d. None of the answers are correct