8 Fixed Assets and Leasehold Improvements
Fixed assets and leasehold improvements comprise the following:

Through April 1998, Knight leased its trading system under a capital lease. Knight cancelled its remaining obligation under the capital lease, which amounted to $713,207. The net book value of the equipment recorded under such capital lease was $619,747, resulting in a gain of $93,460. Depreciation of the capitalized asset was included in depreciation and amortization expense on the Consolidated Statements of Income.