Yes, it sounds like you are doing it correctly.
The 'sale' of the amortized refinance costs is for $0, and that amount should show up on Form 4797.
It is listed as an "asset" because it is an item of value that you paid for, and the cost need to be spread out over a certain time period. It may not be 'sold', but it is 'disposed' of when the property was sold.
