If we are leasing an airplane thru a Capital lease, how do we record depreciation. the only information I have is as follow: 1. We can lease the airplanes between 1-15 years 2. Quarterly lease payments of $184,000 3. Cost of the airplane $4.3M Do you do the calculation base on the life of the lease or the useful life. There is not option to purchase at the end of the lease. do we divide by the cost of the airplane or the total amount of the lease payments. This is what I calculate and I want to make sure that this is how I’m suppose to do it: 4.3/15=286,666.667/4 qrt=$71,666.67