When you lease a car, the dealership will quote you a monthly payment, a residual value, and a capitalized cost. Tucked into the paperwork, you may also find a small decimal number like 0.00125. That number is the money factor, and it is the lease version of an interest rate. Understanding the money factor gives … Read more

If you have ever signed an office lease and thought of it as just a monthly rent check, ASC 842 lease accounting changes that picture. Under this accounting standard, most leases now appear directly on the balance sheet as an asset and a liability, which can make a company look more indebted than its income … Read more

For many businesses, the building they operate from is both a workplace and a major store of capital. A sale leaseback lets a company unlock that capital without moving out. In a sale leaseback transaction, the business sells the property it owns to an investor and immediately leases it back, becoming the tenant of its … Read more