Is the S Corp cash or accrual?

They are selling/assigning the truck lease. They can't sell the truck since they don't own it. I think the $60K assigned to this is ordinary income. I don't think the lease is a capital asset. 

Worst case you have an installment sale but all income is reported in 2025 since it is all ordinary income.

Best case, only the $10K is reported in 2025. It is ordinary income.