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RE: MIT 82
On July 1, 1984, Machise Interstate Transportation Company,
Inc. paid MIT 82 $473,458.00 consisting of the following:
Repayment of balance of advance
at July 1, 1983 $120,919.90
Interest due on above at 10% to
July 1, 1984 12,091.99
Late charge on Fee due at July 1,
1983 (10% x $2,880,595.08) 288,059.51
Partial payment of fee 52,386.60
$473,458.00
Your share of this payment was $7,698.50 which we used
to pay the annual installment due on your note on July
1, 1984. The interest portion of this payment which
you may deduct on your 1984 income tax return is
$4,730.15
The remaining balance due on your note after the
July 1, 1984, payment is $ 44,333.15.
For financial statement purposes the market value of
your interest in MIT 82 at July 1, 1984 was $50,500.00.
We will be sending you an accounting (Form K-1) soon
after the end of the year which will contain all of the
information needed for your 1984 income tax return.
Please call me if you have any questions about MIT 82.
Schweiger received no financial statements for Machise. He
had a great deal of faith in Fred, and, as he explained, did not
"dot the I's and cross the T's in a very sophisticated manner
about asking for financial statements * * * and things like
that."
Schweiger understood that he had signed a note for which he
was liable, but he received no demand for repayments. He was
instead informed that the note had been paid off. He was not
aware of the termination agreements.
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