Central Purchasing Ltd. (CPL) owns the building it uses it had an original cost of $8,000,000 and accumulated depreciation of $2,400,000 as of 1 January 20x2. On this date, the building (but not the land) was sold to a real estate investment trust (REIT) for $7.500,000, 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 $630,000 with no transfer or 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 S1. PVA OS), and PVAD of S1) (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 "Ne Journal entry required" in the first occount field Do not round Intermediate calculations.) View transaction ist View journal entry worksheet No Transaction Credit 1 1 General Journal Cash Accumulated depreciation, building Building Deferred gain on sale and leaseback of building Debit 7.500.000 2 400 000 8.000.000 1.900.000 2 Prepare year-end adjusting entries for 20x2 (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.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 1 Interest expense Lease liability 431,398 ces 431,398 2 2 Lease liability Cash 630,000 630,000 3 3 Depreciation expense, right-of-use asset Accumulated depreciation right-of-use asset 359 498 359 498 3-a Show how all amounts related to the sale and leaseback will be presented on the statement of financial position in 20x2. (Rou the intermediate and final answers to the nearest whole dollar amount.) Statement of Financial Position (Partial) Fbced assets Building as right-of-use asset $ 5392 471 Less Accumulated depreciation (359.498) $ Short-term liabilities 5,032.973 Long-term liabilities Lease liability $ 5.193 8691 5.193 869