On December 31, 2006, Lane, Inc. sold equipment to Noll, and simultaneously leased it back for twelve years. Pertinent information at this date is as follows:
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|
Sales price |
$480,000 |
|
Carrying amount |
360,000 |
|
Estimated remaining economic life |
15 years |
At December 31, 2006, how much should Lane report as deferred gain from the sale of the equipment?
- $0
- $110,000
- $112,000
- $120,000