Trump trial live updates: Judge holds Trump in contempt of court

A bank statement displayed in court showed Cohen paying $130,000 to Davidson, Daniels’ lawyer, on Oct. 27, 2016, out of an account for an entity Cohen created for the purpose.

Weisselberg’s handwritten notes about reimbursing Cohen were stapled to the bank statement in the company’s files, McConney said.

Those notes spell out a plan to pay Cohen a base reimbursement of $180,000 — covering the payment to Davidson and an unrelated technology bill. That total was then doubled or “grossed up” to cover the state, city and federal taxes Weisselberg estimated Cohen would incur on the payments.

Weisselberg then added a $60,000 bonus, for a total of $420,000, according to the notes. That money was to be paid out in 12 monthly installments of $35,000 each.

McConney’s own notes were also shown in court. After calculations that laid out that Cohen would get $35,000 a month for 12 months, McConney wrote: “wire monthly from DJT.”

Asked what that meant, McConney said: “that was out of the president’s personal bank account.”

McConney said he didn’t know of any other time when the company added onto an employee reimbursement to cover the cost of taxes. Employee reimbursements, if characterized as such, are not subject to taxation.

Trump is accused of falsifying business records by labeling the money paid to Cohen in his company’s records as legal fees. Prosecutors contend that by paying him income and giving him extra to account for taxes, the Trump executives were able to conceal the reimbursement.