Which of the following is not a true statement regarding a sale and leaseback?
a. It occurs when the owner of an asset sells the asset and enters into a lease agreement to lease the asset back.
b. The lessor and lessee both use the standard criteria for classifying such a lease as operating or capital.
c. The lessor is the original legal owner and the lessee is the new legal owner.
d. SFAS No. 13 allows a gain or loss to be immediately recognized in cases where the original owner retains the use of a substantially smaller part of the total asset.
ANSWER: C
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