ABC Company sells a building to DEF Company. At the same time, ABC Company enters into a contract with DEF Company for the right to use the building. Data relating to the sale and leaseback are as follows: Selling price Carrying amount Annual lease payment 2,000,000 2,150,000 120,000 Implicit rate Lease term 5% 10 years Required: Prepare all the necessary entries on the part of Seller-Lessee and Buyer-Lessor and answer the following: CASE NO. 1 Assuming fair value of the asset is #2,000,000 How much is the gain (or loss) on rights transferred to be recognized by the lessee How much is the initial cost of the rights of use asset to be recognized by the lessee? CASE NO. 2 Assuming fair value of the asset is $1,800,000 How much is the gain (or loss) on rights transferred to be recognized by the lessee? How much is the initial cost of the rights of use asset to be recognized by the lessee? CASE NO. 3 Assuming fair value of the asset is $2,100,000 How much is the gain (or loss) on rights transferred to be recognized by the lessee? How much is the initial cost of the rights of use asset to be recognized by the lessee?