Opinion ID: 537185
Heading Depth: 4
Heading Rank: 1

Heading: $36,943.73 depreciation expense

Text: 75 In his original Affidavit Attesting Plaintiff's Fiduciary Accounting, Weston swore that $36,943.73 of that money was spent for Depreciation. (R. 310 at 5.) The Gold Technics Defendants then submitted interrogatories asking how any part of the Joint Venture's cash possibly could have been spent on a non-cash item such as depreciation. In response, Weston filed an amended affidavit in which he allocated the $36,943.73 to two other line items in his accounting, $28,156 to Other and the remainder to Offering Expense. (R. 321 at 2.) 76 At the accounting trial, Weston was given the opportunity to explain how he had transformed $36,943.73 of depreciation into cash expenditures and why the newly-found cash expenditures were not included in his original accounting. (Accounting Tr. 44-49.) We agree with the district court that Weston's explanations were inadequate. He provided no itemization of the $28,156 that he allocated to Other. (Id. at 46.) He described his increasing of the Offering Expense category as an after-the-fact adjustment that I felt went to the offering expenses. (Id. at 48.) When the district court pressed Weston on the issue of whether his new figure for offering expenses comported with the amount listed as a deduction on Cascade's 1980 tax return, Weston conceded that he did not know and had not checked. (Id. at 48-49.) 77 The district court properly ordered Weston and Cascade to repay the $36,943.73. 78