To raise operating funds, national distribution center sold its office building to an insurance company on january 1, 2018, for $800,000 and immediately leased the building back. the operating lease is for the final 12 years of the building’s 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, 2018 and december 31, 2018, to record the sale-leaseback and necessary adjustments. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?