Central Purchasing Ltd$.($CPL$)$ owns the bullding it uses; it had an original cost of $$8,096,000$ and accumulated depreciation of $$2,428,800$ as of $1$ January $202.$ On this date, the building $($but not the land$)$ was sold to a real estate Investment trust $($REIT$)$ for $$7,596,000,$ which also was the bulding's fair value, and simultaneously leased back to CPL$.$

The lease has a $15-$year term and required payments on $31$ December of each year. The payments are $$646,000$ with no transfer of $ title or purchase option. CPL will pay all of the bullding's operating and maintenance costs including property taxes and insurance. CPL$\text{'}$s incremental borrowing rate is $9\%.$ The bullding is being depreclated straight$-$Iine with a full year's depreciation in the year of acquisition.

$($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use approprlate factor$($s$)$ from the tables provided.$)$

Required:

Prepare entries for CPL to record the sale and leaseback of the bullding. $($If no entry Is required for a transactlon$/$event$,$ select $"$No Journal entry required" In the flrst account fleld. Do not round Intermedlate calculations.$)$

Journal entry worksheet

$1$

Record the lease for the building under a sale and leaseback.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[1,$Cash,$7,596,000,],[,$Accumulated depreciation, building,$2,428,800,],[,,,],[,,,]]$