- 28 - For 1996, CMACM claimed a $469,221 cost basis in its 25- percent portion of the Jenrich note transferred to Lexington. In addition, CMACM claimed a $459,221 loss from its partial disposition of that note. CMACM also deducted $414,041 for the over lease rental payments that it reported as being paid to Jenrich during 1996. The $414,041 amount equaled the amount due CMACM from Jenrich under the Jenrich installment note. 8. On September 1, 1997, CMACM transferred to Lexington the remaining 75 percent of its interests and obligations under various agreements concerning the Shared end-user lease equipment. Among other things, CMACM transferred: (1) The remaining 75 percent of CMACM’s over lease rights in the Shared equipment, and (2) 75 percent of that portion of the Jenrich note attributable to the Shared equipment. In exchange for CMACM’s transfer, Lexington issued its $1,000 unsecured promissory note to CMACM and assumed 75 percent of that portion of CMACM’s over lease rental payment obligation to Jenrich attributable to the Shared equipment. Pursuant to the terms of the unsecured note, Lexington promised to pay CMACM $1,000, plus 8 percent interest on December 31, 2002. For 1997, CMACM claimed a $1,179,013 basis in the 75-percent portion of the Jenrich note it transferred to Lexington and a $1,178,013 loss from the partial disposition of the note. CMACMPage: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Next
Last modified: May 25, 2011