Consolidated Manufacturing, Inc., M. P. Long Living Trust, Merl Philip Long, Trustee, Tax Matters Person - Page 70

                                        -70-                                          
               is no evidence that any negotiation whatsoever is                      
               permitted regarding the price of the remanufactured                    
               part.  The customer must pay the stated or list price                  
               of the remanufactured part, even if Consolidated knows                 
               that the customer will not provide a core.                             
               We have found the following facts on the instant record:               
          At the time a customer purchased a remanufactured automobile part           
          from Consolidated, (1) that customer became obligated to pay                
          Consolidated the remanufactured automobile part sales price                 
          which consisted of the exchange amount and the core amount and              
          which, along with the exchange amount and the core amount,                  
          Consolidated reflected on the remanufactured automobile part                
          sales invoice that it generated for that sale and (2) Consoli-              
          dated offered to purchase from that customer a customer core                
          corresponding to that part for the customer core purchase offer             
          amount.  There was no obligation on the part of that customer to            
          deliver a customer core to Consolidated as part of that sale.               
          The remanufactured automobile part sales price, the customer core           
          purchase offer amount, and the core credit amount were determined           
          on the basis of market-related factors, including supply and                
          demand.  Consolidated accounted for each remanufactured                     
          automobile part that it sold to a customer by making entries                
          increasing (1) "sales (exchange amount)" by the exchange amount             
          that was part of the remanufactured automobile part sales price             
          for each such part, (2) "sales (core amount)" by the core amount            
          that was part of that price for each such part, and (3) "customer           
          account receivable" by that price for each such part.  If a                 




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