In a direct financing lease, does a lessor always report selling profit or loss on the sale of the leased asset at the lease commencement date? Explain.

A. In a direct financing lease, lessors recognize any loss or profit at the lease commencement. B. In a direct financing lease, lessors defer any loss or profit until the terms of the lease have been fulfilled. C. In a direct financing lease, lessors recognize any loss at the lease commencement, but defer any profit. D. If collectability is probable, the lessor will compute and recognize selling profit or loss at the commencement of the lease. If collectability is not probable on the commencement date, the lessor will not derecognize the underlying asset and defer recognition of the sale until collection becomes probable