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the Partnership’s indebtedness) using the economic accrual of
interest would be the same (namely, $262,344 each year).1
Set forth below, in schedule format, is respondent's
calculation for 1980 through 1985 of the proper monthly economic
accrual of interest on the $2,370,000 principal portion of the
Partnership’s stated indebtedness that is to be recognized in
this case, taking into account the fact that each monthly payment
of $43,725 exceeds the proper economic accrual of interest and
treating the portion of each monthly payment that does not
qualify as interest as a repayment of principal:
Portion of Portion of
Monthly Monthly
Amount of Payment Payment Balance
Monthly Allocated Allocated Due on
Payment For Payment to Interest to Principal Principal
1980
August $ 43,725 $ 21,725 $ 22,000 $2,348,000
September 43,725 21,523 22,202 2,325,798
October 43,725 21,320 22,405 2,303,393
November 43,725 21,114 22,611 2,280,783
December 43,725 20,907 22,818 2,257,965
1980 Total $218,625 $106,589 $112,036
1981
January $ 43,725 $ 20,698 $ 23,027 $2,234,938
February 43,725 20,487 23,238 2,211,700
March 43,725 20,274 23,451 2,188,249
April 43,725 20,059 23,666 2,164,583
May 43,725 19,842 23,883 2,140,700
June 43,725 19,623 24,102 2,116,598
July 43,725 19,402 24,323 2,092,275
August 43,725 19,179 24,546 2,067,729
September 43,725 18,954 24,771 2,042,958
October 43,725 18,727 24,998 2,017,960
November 43,725 18,498 25,227 1,992,733
December 43,725 18,267 25,458 1,967,275
1981 Total $524,700 $234,010 $290,690
1 Twelve months times monthly interest of $21,862 (one-half of
each monthly payment of $43,725) equals $262,344.
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