As stated the lease was treated as an operating lease with a large buyout at the end of the lease and not set up as a capital lease that was depreciated. I did not handle this transaction at the time of the purchase as they had another accountant. So rightly or wrongly does the amount received for the sale of the vehicle considered a 100% gain since it was expensed throughout the life of the lease? That is still my question. 

From an accounting standpoint I understand capital vs operating leases and how they are treated from an accounting aspect but now that the asset is being sold it was handled as a lease/rent expense during the term of the lease is 100% of the proceeds linked to the sale of the truck a capital gain?

Thanks for your input.