- 20 -
Northwest recorded as income on its books the amount of
petitioner's bad debt writeoff. After June 30, 1989, petitioner
did not receive any other assets, cash, or property owned or on
the books of Northwest as of June 30, 1989. Funds that
petitioner received from Northwest after June 30, 1989, were
attributable to units delivered to Northwest after June 30, 1989.
Foretravel Incentive Program for Dealerships
Petitioner established uniform bookkeeping systems for the
subsidiaries, and the subsidiaries also used standard paperwork,
including forms distributed by the Recreational Vehicle Dealer
International Association. The dealerships were retail merchants
that sold and serviced new motor homes, including those
manufactured by Foretravel, less expensive motor homes, used
motor homes, trailers, and other service recreational vehicles.
Each dealership carried at least one "X" brand line of motor
homes.
Motor home manufacturers use a variety of incentive plans
designed to promote the sale of their products. Petitioner was
no exception. Through its incentive program, petitioner sought
to maintain a steady flow of coaches through its manufacturing
operation, thus avoiding fluctuations in employment, supplies,
and general level of operation. Petitioner also sought to obtain
positive publicity from its customers, maintain customer
goodwill, alleviate cash-flow problems, and maintain its
Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 NextLast modified: May 25, 2011