When a company sells property and then leases it back in an arrangement that qualifies as a financing transaction (failed sale), which of the following is not correct accounting treatment on the books of the lessee?

A.The carrying value of the asset is not reduced.

B.The sale proceeds are recognized as a liability.

C.No further depreciation is recorded on the asset.

D. No gain or loss is recognized.

When a company sells property and then leases it back in an arrangement that qualifies as a financing transaction (failed sale), which of the following is not correct accounting treatment on the books of the lessee? The carrying value of the asset is not reduced. The sale proceeds are recognized as a liability. No further depreciation is recorded on the asset. No gain or loss is recognized