To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2021, for $970,000 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 $970,000 and a book value of $735,000 (its original cost was $1 million) The rental payments of $270,000 are payable to the insurance company each December 31. The lease has an implicit rate of 7%. (EV of $1. Py of S1. EVA $1. PVA of S1. EVAD of $1 and PVAD of S1) (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.)