To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2024, for $800,000 and immediately leased the building back.

• The operating lease is for the final 12 years of the buildings estimated 20-year remaining useful life. The building has a fair value of $800,000 and a book value of $650,000 (its original cost was $1 million).
• The rental payments of $100,000 are payable to the insurance company each December 31.
• The lease has an implicit rate of 9%.

Required:

1. & 2. Prepare the appropriate entries for National Distribution Center on January 1, 2024 and December 31, 2024, to record the sale-leaseback and necessary adjustments.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Record sale of building.

Record the beginning of the lease for National.

Record the lease payment made by National.

Record amortization for National.