This question relates to IAS 17 - Leases, which is not valid anymore...

Delta is an entity which prepares financial statements to 30 September each year. Each year the financial statements are authorised for issue on 30 November. During the year ended 30 September 2013 the following transactions occurred:

(c) On 1 April 2013 Delta sold a property for $20 million. The carrying amount of the property was $23 million and its market value on 1 April 2013 was $25 million. On 1 April 2013, Delta entered into an agreement to lease the property on a five-year lease. On that date the useful economic life of the property was estimated at 25 years. Annual lease rentals of $1·8 million were payable on 1 April in advance. These rentals reflected the fact that the property had been sold at a price which was lower than its fair value. (5 marks)

Required: 
Explain and show (where possible by quantifying amounts) how the three events would be reported in the financial statements of Delta for the year ended 30 September 2013. You do not need to quantify amounts which are only shown in the notes to the financial statements.

Note: The mark allocation is shown against each of the three events above. 
You should assume that all transactions described here are material.