To raise operating funds, Signal Aviation sold an airplane on January 1, 2016, to a finance company for $1,070,000. Signal immediately leased the plane back for a 12-year period, at which time ownership of the airplane will transfer to Signal. The airplane has a fair value of $1,100,000. Its cost and its book value were $770,000. Its useful life is estimated to be 14 years. The lease requires Signal to make payments of $148,477 to the finance company each January 1. Signal depreciates assets on a straight-line basis. The lease has an implicit rate of 11%. Required: 1.&2. Prepare the appropriate entries for Signal on January 1, 2016, to record the sale-leaseback. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)