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Accumulated Depreciation (vehicle ) $xx,xxx (debit)
Vehicle $xx,xxx (credit)
Lease signing costs $x,xxx (debit)
Gain of disposal of vehicle $x,xxx (credit)
You would want to break out the lease signing costs into the various expenses.
I am assuming that the lease would be considered an operating lease and at the end of the lease agreement the vehicle would be returned to the leasor.
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