Ted W. Gleave - Page 21

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               On March 3, 1981, Kenmore paid $3,000 to Eggertsville Inn,             
          which Gleave owned.  This payment was not for any benefit to or             
          purpose of Kenmore, but rather was for Gleave’s benefit.                    
               On June 12, 1981, Gleave bought a new 18-foot boat from                
          Zahno Marine, Inc.; this boat is hereinafter sometimes referred             
          to as the Zahno boat.  Gleave paid $8,099.70 for the Zahno boat,            
          after a trade-in credit of $1,500.  This transaction was not                
          reflected in Kenmore’s Account, but Kenmore provided the money              
          for Gleave to buy the Zahno boat.  On July 31, 1981, Gleave                 
          registered the Zahno boat with the New York State Department of             
          Motor Vehicles.  On July 26, 1982, David T. Young, Gleave’s                 
          cousin, registered the Zahno boat with this same agency.  See               
          infra Bankruptcies.  At some later date, Gleave traded the Zahno            
          boat in for a second boat.  At the time of the trial herein,                
          Gleave still had the second boat, although it was by then                   
          registered in the name of a relative.                                       
          1981--Not Income to Gleave                                                  
               Checks numbered 585 ($3,000--Apr. 21, 1981), 643 ($3,500--             
          May 22, 1981), and 1039 ($8,549.92--Oct. 26, 1981) are not income           
          to Gleave.                                                                  
               On August 21, 1981, Kenmore issued a check to “cash” in the            
          amount of $181.72.  The check, or the proceeds, was given to                
          Gleave in order to reimburse him for his expenditures for                   
          gasoline and tolls while driving one of Kenmore’s trucks.                   







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