Bombardment casualties and Leaders

[cjsiam]

So....
Russian howitzer in a field (field don't matter) was with an officer/leader.

That dang German dropped Off Board Artillery on the hex.....

The Artillery comes down as 48pts......meaning it uses the 42 column---But there is a +1 for the Artillery being the target.

So this becomes one of those two different columns -- 42 for the leader target---and 55 for the Artillery...
Rolls low and gets an X on the 42, gets a 2X on the 55.....
dang.

So clearly the 2X takes out the Arty......

What happens to the leader? 
1) he takes it as an X..... and he is eliminated.....
2) he is not a combat unit---so he is not impacted by the X---but he does take the M2, and rolls also for the step loss....

We did 2---but if the decision is 1) we can rectify it before the next turn...

thanks!
cj