Question: Olympia Co. owns a building with a current carrying value on January 1 of $765,000, an original cost of $1,190,000, a 10-year remaining useful

Olympia Co. owns a building with a current carrying value on January 1 of $765,000, an original cost of $1,190,000, a 10-year remaining useful life, and no residual value. The building is sold on January 1 to Beta Investor Inc. for $850,000 cash. Simultaneously, the two parties executed a 10-year lease with a 7% implicit rate of interest, known by both parties. Each annual payment of $127,500 is due on December 31. Assuming that the lease is classified as a finance lease, record Olympia's journal entry(s) on January 1.

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