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assets test. Both CV and CVI intended that, prior to the end of
CVI's taxable year, CVI would reimburse CV's export promotion
expenses and pay a dividend with the funds that were not required
to reimburse the expenses and purchase qualified receivables from
CV. CVI transferred funds to CV's possession prior to the end of
each of the taxable years in issue for those purposes. CV
treated those funds as its own, depositing them in its bank
account, and each transfer was recorded on the respective books
of CV and CVI at that time as a payment by CVI to CV, not as a
loan or open account. There were no circumstances contemplated
by the parties under which those funds would be repaid to CVI and
there were no further conditions that CV was required to satisfy
in order to be entitled to those funds. Consequently, we
conclude that the funds were subject to CV's complete dominion
and control at the time they were deposited in its bank account.
Although, by the close of each of CVI's relevant taxable
years, all events had occurred to determine the total amount of
export promotion expenses owed and qualified accounts receivable
to be purchased, that information was not available to CV's and
CVI's tax and accounting departments at that time. That
unavailability was the only circumstance preventing the each of
CVI's payments to CV from being allocated to and among the
expenses reimbursed, the qualified receivables purchased and the
dividends paid. Moreover, under the terms of the export
promotion agreement, CV was required to bill the export promotion
expenses to CVI at the close of CVI's fiscal year, and the amount
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