Capital Lease – Like Kind Exchange

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  • December 2, 2015 at 12:25 am #198716
    FIFOisbetterthanLIFO
    Participant

    Anyone have thoughts on the GAAP treatment for this transaction from the lessee standpoint:

    Original capital lease was 60 month lease for $2000. Lease has remaining amount of $1000. New equipment is being purchased on a 60 month capital lease for $5000 and the leasing company is forgiving the $1000 lease. Estimated depreciation on current equipment is $500. Is there any like kind exchange treatment on a capital lease?

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