To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2016, for $940,000 and immediately leased the building back. The operating lease is for the final 10 years of the buildings estimated 50-year useful life. The building has a fair value of $940,000 and a book value of $720,000 (its original cost was $1 million). The rental payments of $240,000 are payable to the insurance company each December 31. The lease has an implicit rate of 8%.

Required:
1.&2.	Prepare the appropriate entries for National Distribution Center on January 1, and December 31, 2016, 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