On January 1, year 1, a shipping company sells a boat and leases it from the buyer in a sale-leaseback transaction. At the end of the 10-year lease, ownership of the boat does not revert to the shipping company. The fair value of the boat, at the time of the transaction, was less than its undepreciated cost. Which of the following outcomes most likely will result from the sale-leaseback transaction? Multiple Choice The shipping company will recognize the total profit on the sale of the boat ratably over the lease term. The shipping company will treat the transaction like a loan to raise cash The boat will be classified in property, plant and equipment of the shipping company. The shipping company will recognize in the current year a loss on the sale of the boat