-22-
years ended in 1992 through 1998, Printgraphics reported as to
the 1991 Rapistan conveyor system the following amounts of lease
income, interest expense, depreciation, and loss:
1992 1993 1994 1995 1996 1997 1998
Lease income $122,938 $163,918 $163,918 $163,918 $163,918 $163,918 $122,940
Interest expense (80,877) (117,907) (113,466) (108,596) (103,256) (97,401) (68,234)
Depreciation (201,842) (345,913) (247,041) (176,417) (126,133) (125,992) (94,228)
Loss 159,781 299,902 196,589 121,095 65,471 59,475 39,522
B. 1995 Computer Equipment
Capital Resources Group, Inc. (CRG), is a corporation
unaffiliated with any Hubert company. On April 30, 1995,
Starwood sold computer equipment (1995 computer equipment) to CRG
for $6,822,000, and CRG leased the 1995 computer equipment back
to Starwood. Pursuant to promissory notes dated April 30, 1995,
CRG promised to pay $445,538 and $6,058,983 to Starwood as to the
sale.
Also on April 30, 1995, Printgraphics purchased the 1995
computer equipment (subject to the lease) from CRG for
$6,822,000. Printgraphics paid CRG $360,000 and issued CRG a
short-term promissory note for $445,538 and an installment
promissory note for $6,016,462. The installment note stated it
was recourse to the extent of $2.2 million and that payments of
principal on the recourse portion would be reduced pro rata to
the extent the outstanding indebtedness on the note was reduced.
For each of its taxable years ended in 1995 through 1998,
Printgraphics reported as to the 1995 computer equipment the
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011