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Consolidated, an S corporation, had its principal place of
business in Hutchinson, Kansas, at the time the petition was
filed. The M.P. Long Living Trust is Consolidated's tax matters
person.
Consolidated's Business
Consolidated engaged in the recovery, reconditioning, and
restoration to salable condition of used and worn automobile
parts, including engines, crankshafts, cylinder heads,
transmissions, and various smaller parts, which it sold as
remanufactured automobile parts to its customers. (We shall
refer to the foregoing activities in which Consolidated engaged
as remanufacturing.) Consolidated was authorized by Ford Motor
Company (Ford) to produce specified remanufactured automobile
parts and sell them within certain counties in Kansas, Missouri,
and Arkansas to Ford-authorized dealers (Consolidated's Ford
customers) as Ford remanufactured automobile products.
Consolidated's Ford customers sold the remanufactured automobile
parts that they had purchased from Consolidated to wholesale and
retail consumers.
Consolidated also produced and sold remanufactured engines,
crankshafts, and cylinder heads under its own private label known
as Four Star Engine & Parts (Four Star label) to certain
warehouse distributors and to Ford-authorized dealers
(Consolidated's Four Star label customers). Consolidated's Four
Star label customers sold the remanufactured automobile parts
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