LEASE PAYMENTS
The amount or value the lesser should pay during the lease term. It is a line item under long-term debt that is indicated in a balance sheet. The lease holder provides the lease payments on a regular basis. To determine the value, add the rent charge, the depreciation charge, and applicable taxes. Depreciation charge is calculated by subtracting the Net Capitalized Cost and Residual Value, then divide it by the term (typically in months).
Lease payments vary between companies or dealers. Even if the firms are in the same industry, it is not advisable to compare the lease-payment figures they offer. It is more appropriate to compare long-term debt in general.
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