USA accounting for new HVAC system under finance

[AGH the CPA]

Our company got a new HVAC system under a financing deal

sample numbers rounded for ease

yield 6%
amount $80,000
monthly payment $1500
advance payment (first and last 2 months) $4500
documentation fee $300

Best way to account for this? It is a capital improvement right? We don't own our building though...

 

[kirby]

Capital improvement - yes!
If you are in a building you don't own, then you are likely leasing the space. So capitalize this as a "Leasehold Improvement."