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how to set up a lease with shorter amortization time frame than lease term

Summary:

We have a lease that we pay $1000 each month of 5 years (60 payments). However, GASB rules require that we finish amortizing this lease at the end of 4th year because the useful life of the asset is only 4 years even though the Lease itself is for 5 years.

We need to amortize the Lease Asset (present value of $60,000, $1000 x 12months x 5years) over 4 years, while we make payments for 5 years.


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Version (include the version you are using, if applicable):

26A


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