| Summary of Significant Accounting Policies | Use of Estimates The preparation of financial statements is in conformity with accounting
principles generally accepted in the United States of America which requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates and these differences could be material. Such estimates relate primarily to the determination of residual values at the
end of the lease term, the expected future cash flows, and fair value used for impairment analysis purposes and determination of
the allowance for doubtful accounts. Disclosure of Fair Value of Financial Instruments Fair Value Measurements The Partnership applies the provisions included in the Fair Value
Measurements and Disclosures Topic to all financial and non-financial assets and liabilities. This Topic emphasizes that fair value
is a market-based measurement, not an entity-specific measurement. It clarifies that fair value is an exit price, representing
the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market
in an orderly transaction between market participants on the measurement date. The Topic requires the use of valuation techniques
to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized
as follows:
● Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities.
● Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
● Level 3: Unobservable inputs for which there is little or no market data and which require internal development of assumptions about how market participants price the asset or liability. There were no assets or liabilities measured at fair value on a
recurring basis at December 31, 2019 and 2018. There were no assets or liabilities measured on a non-recurring basis at December
31, 2019 and 2018. Fair Value disclosures of financial instruments Estimated fair value was determined by management using available
market information and appropriate valuation methodologies. However, judgment was necessary to interpret market data and develop
estimated fair value. Cash, other receivables, accounts payable and other accrued expenses are carried at amounts which reasonably
approximate their fair values as of December 31, 2019 and 2018 due to the immediate or short-term nature of these financial instruments. The Partnership’s long-term debt consists of notes payable,
which are secured by specific equipment and are nonrecourse liabilities of the Partnership. The estimated fair value of this debt
at December 31, 2019 and 2018 approximates the carrying value of these instruments, due to the interest rates on this debt approximating
current market interest rates. The Partnership classifies the fair value of its notes payable within Level 2 of the valuation hierarchy
based on the observable inputs used to estimate fair value. Revenue Recognition For the years ended December 31, 2019 and 2018, the Partnership’s
lease portfolio consisted of operating leases and finance leases. For operating leases, lease revenue is recognized on a straight-line
basis in accordance with the terms of the lease agreement. Finance lease interest income is recorded over the term of the lease
using the effective interest method. For finance leases, we record, at lease inception, unearned finance lease income which is
calculated as follows: total lease payments, plus any residual value and initial direct costs, less the cost of the leased equipment. Upon the end of the lease term, if the lessee has not met the return
conditions as set out in the lease, the Partnership is entitled in certain cases to additional compensation from the lessee. The
Partnership’s accounting policy for recording such payments is to treat them as revenue. Gains or losses from sales of leased and off-lease equipment are
recorded on a net basis in the Partnership’s Statement of Operations. Recently Adopted Accounting Pronouncements In December 2018, the Financial Accounting Standard Board (“FASB”)
issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors In March 2016, the FASB issued Accounting Standards Update No. 2016-02,
Leases (Topic 842) Section A—Leases: Amendments to the FASB Accounting Standards Codification® Section B—Conforming
Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification® Section C—Background Information
and Basis for Conclusions In March 2019, the FASB issued Accounting Standards Update No. 2019-01,
Leases (Topic 842) Codification Improvements —
● Determining the fair value of the underlying asset by lessors that are not manufacturers or dealers (Issue 1).
● Presentation on the statement of cash flows—sales-type and direct financing leases (Issue 2).
● Transition disclosures related to Topic 250, Accounting Changes and Error Corrections (Issue 3). We adopted Topic 842 at the required adoption date of January 1,
2019. The Partnership concluded that the sales taxes and other similar taxes collected from the lessees are recorded in the current
period in the Condensed Statement of Operations as gross revenues and expenses. As permitted by the guidance, we elected the practical
expedient that allows us not to restate comparative periods in the financial statements. Upon adoption of this update, there was
no significant change to the Partnership accounting. Recent Accounting Pronouncements Not Yet Adopted FASB issued a new guidance, Accounting Standards Update No. 2016-13,
Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Codification Improvements to Topic 326, Financial Instruments – Credit Losses and Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief. On November 15, 2019, the FASB delayed the effective date of FASB
ASC Topic 326 for certain small public companies and other private companies. As amended, the effective date of ASC Topic 326 was
delayed until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies
under the SEC’s definition, as well as private companies and not-for-profit entities. Other Assets Equipment acquisition costs and deferred expenses are amortized
on a straight-line basis over two-to-four year lives based on the original term of the lease and the loan, respectively. Unamortized
acquisition costs and deferred expenses are charged to amortization expense when the associated leased equipment is sold. Long-Lived Assets Depreciation on equipment for financial statement purposes is based
on the straight-line method estimated generally over useful lives of two to five years. Once an asset comes off lease or is released,
the Partnership reassesses the useful life of an asset. The Partnership evaluates its long-lived assets when events or circumstances
indicate that the value of the asset may not be recoverable. The Partnership determines whether impairment exists by estimating
the undiscounted cash flows to be generated by each asset. If the estimated undiscounted cash flows are less than the carrying
value of the asset then impairment exists. The amount of the impairment is determined based on the difference between the carrying
value and the fair value. Fair value is determined based on estimated discounted cash flows to be generated by the asset, third
party appraisals or comparable sales of similar assets, as applicable, based on asset type. Residual values are determined by management and are calculated
using information from both internal and external sources, as well as other economic indicators. Reimbursable Expenses Reimbursable expenses are comprised of both ongoing operational
expenses and fees associated with the allocation of salaries and benefits, referred to as other LP (“other LP”) expenses.
For the year ended December 31, 2019, the General Partner waived certain reimbursable expenses charged to the Partnership by CCC
in connection with the administration and operation of the Partnership. CCC is not reimbursed for salary and benefit costs of control
persons. Reimbursable expenses, which are charged to us by CCC in connection with our administration and operation, are allocated
to us based upon several factors including, but not limited to, the number of investors, leasing volume and stage of the program.
For example, if one partnership has more investors than another program sponsored by CCC, then higher amounts of expenses related
to investor services, mailing and printing costs will be allocated to that partnership. Also, while a partnership is in its offering
stage, higher compliance costs are allocated to it than to a program not in its offering stage, as compliance resources are utilized
to review incoming investor suitability and proper documentation. Finally, lease related expenses, such as due diligence, correspondence,
collection efforts and analysis staff costs, increase as programs purchase more leases, and decrease as leases terminate and equipment
is sold. All of these factors contribute to CCC’s determination as to the amount of expenses to allocate to us or to other
sponsored programs. CCC is not reimbursed for salary and benefit costs of control persons. For the Partnership, all reimbursable
items are expensed as they are incurred. Forgiveness of Related Party Payables In accordance with ASC Topic 470-50 Debt Modifications and Extinguishments Lease Income Receivable Lease income receivable includes current lease income receivable
net of allowances for uncollectible accounts, if any. The Partnership monitors lease income receivable to ensure timely and accurate
payment by lessees. Its Lease Relations department is responsible for monitoring lease income receivable and, as necessary, resolving
outstanding invoices. Lease revenue is recognized on a monthly straight-line basis which is in accordance with the terms of the
lease agreement. The Partnership reviews a customer’s credit history before
extending credit. When the analysis indicates that the probability of full collection is unlikely, the Partnership may establish
an allowance for uncollectible lease income receivable based upon the credit risk of specific customers, historical trends and
other information. The Partnership writes off its lease income receivable when it determines that it is uncollectible and all economically
sensible means of recovery have been exhausted. Cash and cash equivalents We consider cash and cash equivalents to be cash on hand and highly
liquid investments with the original maturity dates of 90 days or less. At December 31, 2019, cash was held in a bank account maintained
at one financial institution with a balance of approximately $7,000. Bank accounts are federally insured up to $250,000 by the
FDIC. At December 31, 2019 and 2018, the total cash bank balance was approximately as follows:
Balance at December 31 2019 2018
Total bank balance $ 7,000 $ 21,000
FDIC insured (7,000 ) (21,000 )
Uninsured amount $ - $ - The Partnership’s bank balances are fully insured by the FDIC.
The Partnership deposits its funds with a Moody's AAA-Rated banking institution which is one of only three AAA-Rated banks listed
on the New York Stock Exchange. The Partnership has not experienced any losses in such accounts, and believes it is not exposed
to any significant credit risk. The amount in such accounts will fluctuate throughout 2020 due to many factors, including cash
receipts, equipment acquisitions, interest rates, and distribution to limited partners. Income Taxes Pursuant to the provisions of Section 701 of the Internal Revenue
Code, the Partnership is not subject to federal or state income taxes. All income and losses of the Partnership are the liability
of the individual partners and are allocated to the partners for inclusion in their individual tax returns. The Partnership does
not have any entity-level uncertain tax positions. In addition, the Partnership believes its tax status as a pass-through entity
would be sustained under U.S. Federal, state or local tax examination. The Partnership files U.S. federal and various state income
tax returns and is generally subject to examination by federal, state and local income tax authorities for three years from the
filing of a tax return. Taxable income differs from financial statement net income as a
result of reporting certain income and expense items for tax purposes in periods other than those used for financial statement
purposes, principally relating to depreciation, amortization, and lease revenue. Net Income Per Equivalent Limited Partnership Unit The net income per equivalent limited partnership unit is computed
based upon net income allocated to the limited partners and the weighted average number of equivalent units outstanding during
the period. |
