Ryan Corp.enters into and sale and leaseback agreement with Geisler Corp.Ryan Corp.sold its building to Geisler Corp.for $400,000.The building had a historical cost of $600,000 and accumulated depreciation of $300,000.Ryan Corp.then leased it back from Geisler corp.for
$80,000 per year for 10 years.Prepare the journal entry to record the sale.

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The Answer of Ryan Corp.enters into and sale and leaseback agreement with Geisler Corp.Ryan Corp.sold its building to Geisler Corp.for $400,000.The building had a historical cost of $600,000 and accumulated depreciation of $300,000.Ryan Corp.then leased it back from Geisler corp.for
$80,000 per year for 10 years.Prepare the journal entry to record the sale.

Ryan CorpEnters into and Sale and Leaseback Agreement with Geisler Corp