Equipment Lease - Reduce the Scope of a Lease

How can we reduce the scope of a lease and generate the expected gain/loss that the event should trigger?

To work through an example:

Lease 4152 (original and amended LDR attached):

• Lease term 13-Jan-2020 to 12-Jan-2023
• Lease payments of $3,000 per month, payable on the 1st of the month
• Interest rate of 2%
• Storage area of 500sqm

Hypothetical amendment:

• Effective 1-Nov-2020, reduction of storage area by 50% (to 250sqm)
• Lease payments reduced to $2,000.00 per month

To work through this scenario using the LDRs for support, the methodology is to reduce the remaining asset and liability balance by 50% and generate a gain or loss based on the difference between the actual remaining liability and the reduction caused by the modification to the lease. To show in a schedule: