1. If a business had a net loss for the year, where would the net loss be reported on the worksheet? 2. Zimmern Machines sold equipment with a 10-year economic life to Bourdain Acres, while concurrently entering into an 8-year leaseback. Eight years is considered a major part of the economic life of the equipment. The sale agreement contains no option for Zimmern to repurchase the equipment or any other provision that would prevent its sale. Can Zimmern Machines account for the transaction as a sale-leaseback? Why?
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