Central Purchasing Ltd$.($CPL$)$ owns the building it uses; it had an original cost of $$8,048,000$ and accumulated depreciation of $$2,414,400$ as of $1$ January $20$X$2.$ On this date, the building $($but not the land$)$ was sold to a real estate investment trust $($REIT$)$ for $$7,548,000,$ which also was the building$$s fair value, and simultaneously leased back to CPL$.$

The lease has a $15-$year term and required payments on $31$ December of each year. The payments are $$638,000$ with no transfer of title or purchase option. CPL will pay all of the building$$s operating and maintenance costs including property taxes and insurance. CPL$$s incremental borrowing rate is $8\%.$ The building is being depreciated straight$-$line with a full year$$s depreciation in the year of acquisition.

$($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1.$ Prepare entries for CPL to record the sale and leaseback of the building. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.$)$

$2.$ Prepare year$-$end adjusting entries for $20$X$2.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round the intermediate and final answers to the nearest whole dollar amount.$)$

$3-$a$.$ Show how all amounts related to the sale and leaseback will be presented on the statement of financial position in $20$X$2.($Round the intermediate and final answers to the nearest whole dollar amount.$)$

$3-$b$.$ Show how all amounts related to the sale and leaseback will be presented on the statement of comprehensive income in $20$X$2.($Round the intermediate and final answers to the nearest whole dollar amount.$)$

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