Coggin Automotive Corporation - Page 26

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          (i.e., receivables).  See, e.g., secs. 704(c), 731, 734(b), 743(b),         
          We recognize that in several instances courts have found the                
          entity approach better than the aggregate approach.  For example,           
          in P.D.B. Sports, Ltd. v. Commissioner, 109 T.C. 423 (1997), this           
          Court used the entity approach for purposes of applying section             
          1056.  Similarly, in Madison Gas & Elec. Co. v. Commissioner, 72            
          T.C. 521, 564 (1979), affd. 633 F.2d 512 (7th Cir. 1980), this              
          Court and the Court of Appeals for the Seventh Circuit applied the          
          entity approach in determining whether expenses were ordinary and           
          necessary under section 162.  Likewise, in Brown Group, Inc. &              
          Subs. v. Commissioner, 77 F.3d 217 (8th Cir. 1996), revg. 104 T.C.          
          105 (1995), the Court of Appeals for the Eighth Circuit concluded           
          that the entity approach, rather than the aggregate approach,               
          should be used in characterizing income (subpart F income) earned           
          by the partnership.  We do not believe the holdings in those cases          
          to be dispositive here.  The outcomes in those cases were based             
          upon the specific legislative histories and statutory schemes of            
          the respective Code provisions at issue.  Each court viewed the             
          respective statute in the context in which it was enacted and               
          concluded that the entity approach was more appropriate than the            
          aggregate approach to carry out Congress’ intent.  Here, as stated,         
          both the legislative history and the statutory scheme of section            
          1363(d) mandate the application of the aggregate approach.                  
               Finally, we do not believe that section 1363(d)(4)(D) operates         

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