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The following information pertains to a sale and leaseback of equipment by mega co. on december 31, year 1: sales price $400,000 carrying amount 300,000 monthly lease payments 3,250 present value of lease payments 36,900 the estimated remaining life of the asset is 25 years and the lease term is 1 year. mega uses ifrs. the sales price is equal to the fair value of the leaseback asset. what amount of deferred gain on the sale should mega report at december 31, year 1

User Dieguinho
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The PV of lease payment is less than 10% of FMV of lease back property. As a result, a full gain of 100,000 is recognized,
User Jpmonette
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