Question: Able sold its headquarters building at a gain, and simultaneously leased back the building. The lease was reported as a capital lease. At the time

Able sold its headquarters building at a gain, and simultaneously leased back the building. The lease was reported as a capital lease. At the time of sale, the gain should be reported as

a. Operating income.

b. An extraordinary item, net of income tax.

c. A separate component of stockholders’ equity.

d. An asset valuation allowance.

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