Exercise 15-41 (Algo) Sale-leaseback; operating lease [LO Appendix 15] To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2021, for $815,000 and immediately leased the building back. The operating lease is for the final 10 years of the building's estimated 20-year remaining useful life. The building has a fair value of $815,000 and a book value of $715,000 (its original cost was $1 million). The rental payments of $300,000 are payable to the insurance company each December 31. The lease has an implicit rate of 10%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. & 2. Prepare the appropriate entries for National Distribution Center on January 1, 2021 and December 31, 2021, to record the sale-leaseback and necessary adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Debit Cred 1 Date General Journal January 01, 2021 Cash Accumulated depreciation Building Gain on sale-leaseback 2 January 01, 2021 Right-of-use asset Lease payable 3 December 31, 2021 Lease payable Interest expense Cash 4 December 31, 2021 Amortization expense Right-of-use asset