Vendeur Ltd. owns a building in central Montreal. Vendeur enters into an agreement with Bailleur Inc., whereby Vendeur sells the buildingbut not the land on which it sitsto Bailleur and simultaneously leases it back. The details are as follows: The original cost of the building was $10,000,000; it is 60% depreciated on Vendeurs books. Bailleur agrees to pay Vendeur $8,500,000 for the building, which is the fair value at the time of the sale. Bailleur agrees to lease the building to Vendeur for 20 years. The annual lease payment is $850,000, payable at the end of each lease year. There is no guaranteed residual value. Vendeur will pay all of the buildings operating and maintenance costs, including property taxes and insurance. The effective date of the agreement is 1 January 20X1. Vendeurs incremental borrowing rate is 9%. Bailleurs interest rate implicit in the lease is computed after tax and is not disclosed to Vendeur. Vendeur uses straight-line depreciation for its buildings, with full-year depreciation in the year of acquisition. Year-end of both companies is December 31 Required: 1. Prepare the journal entry to record the sale by Vendeur to Bailleur on January 1, 20X1.Record the journal entries required by Venduer to record the lease agreement including all the entries for the year 20X1 fiscal period including any entries required as a result of the sale leaseback.