NOTE: I have the correct account names in the first journal entry. Thank you!

To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2018, for $960,000 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 $2,600,000 and a book value of $730,000 (its original cost was $1 million). The rental payments of $260,000 are payable to the insurance company each December 31. The lease has an implicit rate of 10%. Required: 1. & 2. Prepare the appropriate entries for National Distribution Center on January 1, 2018 and December 31, 2018, 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 Journal entry worksheet 1 2 3 4 > Record sale of building. Note: Enter debits before credits. Debit Credit Date January 01, 2018 General Journal Cash Accumulated depreciation Building Gain on sale Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the beginning of the lease for National. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2018 Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 3 4 Record the lease and interest expense for National. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2018 Record entry Clear entry View general journal View transaction list Journal entry worksheet