estion # To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2019, for $940,000 and immediately leased the building back. The operating lease is for 10 years. The building has a fair value of $940,000 and a book value of $720,000 (its original cost insurance company each December 31, The lease has an implicit rate of 8% was S1 million). The rental payments of $120,000 are payable to the Prepare the appropriate journal entries that National records on January 1,2019