To raise operating funds, National Distribution Center sold its office building to an Insurance and immediately leased the building back. The operating lease is for the final 10 years of the building's estimated 2 useful life. The building has a fair value of $780,000 and a book value of $655,000 (its original cost was $1 million). The rernt payments of $110,000 are payable to the insurance company each December 31, The lease has an implicit rate of 7%. company on January 1, 2018, for $810,000 0-year remaining Required . & 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 Record sale of building. 2 Record the beginning of the lease for National. 3 Record the lease and interest expense for National. 4 Record the amortization expense for National. 1,000,000 155,000 Note: journal entry has been entered