Hubert Enterprises, Inc. and Subsidiaries, et al. - Page 22

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          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                







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