Taking into consideration the above guidance to capture this transaction in Cradle:
Add the agreement, as per 842-20, like adding any agreement.
Navigate to the Modifications tab of the agreement and click ROU Impairment/Reverse Impairment.
Write down the asset to zero. To get that value, look up the balance sheet value on the date of the write-down.
Once you follow all the steps, you're now in compliance with ASC 842-20.
*Note the journal description will include "impairment," so you may want to update the in the journal export.
