| Summary of Significant Accounting Policies | Basis
of Presentation The
unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange
Commission. Financial information as of December 31, 2019 has been derived from the audited financial statements of the Partnership,
but does not include all disclosures required by generally accepted accounting principles to be included in audited financial
statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair
presentation of the financial information for the periods indicated, have been included. Operating results for the three months
ended March 31, 2020 are not necessarily indicative of financial results that may be expected for the full year ended December
31, 2020. Disclosure
of Fair Value 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 and cash equivalents, receivables, accounts payable
and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of March 31,
2020 and December 31, 2019 due to the 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 March 31, 2020 and December 31, 2019 approximates the carrying value
of these instruments, due to the interest rates on the 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. Cash
and cash equivalents We
consider cash equivalents to be highly liquid investments with the original maturity dates of 90 days or less. At
March 31, 2020, cash and cash equivalents was held in one account maintained at one financial institution with an aggregate balance
of approximately $12,000. Bank accounts are federally insured up to $250,000 by the FDIC. At March 31, 2020, the total cash bank
balance was as follows:
At
March 31, 2020 Balance
Total
bank balance $ 12,000
FDIC
insured (12,000 )
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 and interest rates. Recent
Accounting Pronouncements Adopted In
December 2018, the Financial Accounting Standard Board (“FASB”) issued (ASU 2018-11), Targeted improvements, In
December 2018, the Financial Accounting Standard Board (“FASB”) issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope
Improvements for Lessors The
amendments also clarify that when lessors allocate variable payments to lease and non-lease components they are required to follow
the recognition guidance in ASC 842 for the lease component and other applicable guidance, such as ASC 606, for the non-lease
component. The Partnership concluded, upon adoption of this update that there was no significant change to their accounting. The
FASB issued ASU 2019-01, Codification Improvements, Fair
Value Measurement 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. The
FASB developed the guidance in response to concerns that credit losses were identified and recorded “too little, too late”
in the period leading up to the global financial crisis of 2008. More recently, the impact of the COVID -19 pandemic may bring
new challenges to identifying credit losses. While the new standard is expected to have a significant effect on entities in the
financial services industry, particularly banks and others with lending operations, the guidance affects all entities in all industries
and applies to a wide variety of financial instruments, including trade receivables. ASC
326-20’s CECL impairment model requires an estimate of expected credit losses, measured over the contractual life of an
instrument that considers forecasts of future economic conditions in addition to information about past events and current conditions.
The standard provides entities with significant flexibility in how to pool financial assets with similar risk characteristics,
determine the contractual term and obtain and adjust the relevant historical loss information that serves as the starting point
for developing the estimate of expected lifetime credit losses. The
Financial reporting developments (“FRD”) addresses the new guidance on the following topics: ●
The current expected credit loss (CECL) impairment model (ASC 326-20) for financial assets measured at amortized cost, including
net investments (i.e. for sales-type lease, the lease receivable and the unguaranteed residual asset; for direct finance lease,
the lease receivable and the unguaranteed residual asset less any deferred selling profit). ●
The available-for-sale (AFS) debt security impairment model (ASC 326-30) ●
The initial recognition of what are called purchased financial assets with evidence of credit deterioration or purchased credit-deteriorated
(PCD) assets ●
The accounting for beneficial interests in securitized financial assets in the scope of ASC 325-40, Investments — Other
— Beneficial Interests in Securitized Financial Assets 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. The Partnership continues to evaluate the impact of the new guidance on its condensed financial statements. In
January 2020, The FASB issued ASU 2020-01, Investments – Equity Securities (Topic 321), Investments – Equity
Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic
321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force). ASU
2020-01 also addresses questions about how to apply the guidance in Topic 815, “Derivatives and Hedging,” Financial Instruments.” For
public business entities, ASU 2020-01 is effective for fiscal years beginning after December 15, 2020, and interim periods within
those fiscal years. For all other entities, ASU 2020-01 is effective for fiscal years beginning after December 15, 2021, and interim
periods within those fiscal years. Early adoption is permitted, including early adoption in an interim period, (a) for public
business entities for periods for which financial statements have not yet been issued and (b) for all other entities for periods
for which financial statements have not yet been made available for issuance. The Partnership continues to evaluate the impact
of the new guidance on its condensed financial statements. |
