Question: This problem is comprised of three parts. Part A. Fields Company sells a building to Victory Finance Company. The selling price of the building is

This problem is comprised of three parts.
Part A. Fields Company sells a building to Victory Finance Company. The selling price of the building is $500,000, which approximates its fair value, and the carrying amount is $400,000. Fields then leases the building back from Victory under an operating lease for a period of three years.
Required:
Determine how Fields should account for the gain or loss on sale-and-leaseback.
Part B. Fields Company sells a building to Victory Finance Company. The selling price of the building is $500,000, which exceeds its fair value of $470,000. The carrying amount is $400,000. Fields then leases the building back from Victory under an operating lease for a period of three years.
Required:
Determine how Fields should account for the gain or loss on sale-and-leaseback.
Part C. Fields Company sells a building to Victory Finance Company. The selling price of the building is $500,000, which is equal to its fair value. The carrying amount of the building is $400,000. Fields then leases the building back from Victory under a finance lease for a period of 20 years.
Required:
Determine how Fields should account for the gain or loss on sale-and-leaseback.

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