To raise operating funds, North American Courier Corporation sold its building on January $1,2024,$ to an insurance company for $$440,000$ and immediately leased the building back. Complete this question by entering your answers in the tabs below.

Show how North American's December $31,2024,$ balance sheet and income statement would reflect the sale$-$leaseback.

Note: Round your intermediate and final answers to nearest whole dollar.

$\backslash$table$[[$Balance Sheet,$],[$Assets:$,$$$,1,220,000],[$Building$,],[$Less: Accumulated depreciation,$$,1,220,000],[,],[$Liabilities:$,],[$Current:$,],[$Notes payable,$],[,],[$Noncurrent:$,],[$Notes payable,$],[,],[,],[$Interest expense,$],[$Depreciation expense,$],[]]$

The lease is for a $10-$year period ending December $31,2033,$ at which time ownership of the building will revert to North American Courier.

The building has a carrying amount of $$510,000($original cost $$1,220,000).$

The lease requires North American to make payments of $$71,608$ to the insurance company each December $31.$

The building had a total original useful life of $30$ years with no residual value and is being depreciated on a straight$-$line basis.

The lease has an implicit rate of $10\%.$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Prepare the appropriate entries for North American $($a$)$ on January $1,2024,$ to record the transaction and $($b$)$ on December $31,2024,$ to record necessary adjustments.

Show how North American$$s December $31,2024,$ balance sheet and income statement would reflect the sale$-$leaseback.