please answer b

Exercise 21A-17 a-c (Part Level Submission) On January 1, 2017, Sage Hill Co. leased a building to Oriole Inc. The relevant information related to the lease is as follows. 1The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $2,800,000 (unguaranteed). 2. The leased building has a cost of $3,300,000 and was purchased for cash on January 1, 2017. 3 The building is depreciated on a straight-line basis. Its estimated economic life is 50 years with no salvage value. 4 Lease payments are $270,000 per year and are made at the beginning of the year. Oriole has an incremental borrowing rate of 6 %, and the rate implicit in the lease is unknown to Oriole. 6 Both the lessor and the lessee are on a calendar-year basis. Prepare the journal entries that Sage Hill should make in 2017. (Credit account titles are automatically Indented when amount is entered. Do not Ind Account Titles and Explanation Date Debit Credit Buildings 3300000 1/1/17 3300000 cash (To record cost of the building) Cash 270000 270000 Unearned Lease Revenue (To record receipt of lease payment) 270000 12/31/17 Unearned Lease Revenue 270000 Lease Revenue (To record the recognition of the revenue each period) 66000 Depreciation Expense 66000 Accumulated Depreciation-Building tisn uponco.on the leased asset) (b) Prepare the joumal entries that Oriole should make in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manu declmal places, e.g. 5,275.) (Part Debit Credit Account Titles and Explanation Date sion) 1/1/17 Right-of-Use Asset sion) Lease Liability sion) (To record the lease) ssion) 270000 d ssion) (Part 1/1/17 Lease Liability 270000 Cash (To record lease liability) 270000 Study 12/31/17 Lease Expense Right-of-Use Asset Lease Liability Open Show Work Click if you would like to Show Work for this