On January 1, Year 1. Entity A sold property to Entity B and simultaneously leased it back for 4 years. Which of the following statements is true if the leaseback was properly classified as a sales-type lease? On January 1 Year 1. Entity A will recognize the property at the present value of the leased payments to be made to Entity 8. Entity A will continue to report the leased property and depreciate it. Entity A will recognize a gain or loss on the initial transfer of the property to Entity B. Entity B will recognize the property at its fair value on January 1, Year 1