Which of the following statements is not correct for sale-and-leaseback transactions under the new ASC 842 accounting guidance for leases?

Multiple Choice

• If control of the asset has not been given up, the transaction is not a sale.

• If the seller-lessee has the option to repurchase the asset at less than fair value of the asset at time of exercise, the transaction is not treated as a sale.

• The changes in ASC 842 give seller-lessees less incentive to enter into sale-and-leaseback transactions.

• Seller-lessees have higher motivation to enter into a finance lease under ASC 842 than they did under ASC 840.