Deposition of Partners Equity Martin Babicki

“In your article about the effect of writing off Norvergence leases, the owner of the leasing company said that writing off the leases did not effect his bottom line or equity position. My understanding of accounting is when you write off a receivable it flows through the net income as a loss and correspondingly as a reduction in the equity account.

“As to his position that he still intends to collect this
money so it really didn't effect those two items, I wish him good luck
especially having read your news items recently!”

Dick Eichner
deichner@nafclease.com

(For readers who missed the article, please go to:
http://www.leasingnews.org/archives/June%202005/6-29-05.htm#equity

Here is a copy of the deposition of Martin Babicki, Executive Vice President

Risk/Operations:
http://www.leasingnews.org/photos/biopic3.jpg

Martin Babicki
http://www.leasingnews.org/items/Babicki_depo_%20in_Florida.doc