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This is important, because no "economic outlay" was required on A's part; rather, A simply received a distribution of a note receivable from Profitco.
Unfortunately, Meruelo does not explain why in the example in the regulations, the shareholder was able to increase his debt basis in a debtor S corporation when he received a distribution of the loan receivable from an affiliated lender, despite the lack of an economic outlay on his part.
Perhaps the difference is, when a shareholder receives a distribution of a note receivable from an affiliated S corporation, while no economic outlay on the part of the shareholder occurs, the distribution does have tax significance, as it reduces the shareholder's stock basis in the distributing business.
Halliburton will also buy a $50 million insurance receivable from Harbison-Walker, which is in bankruptcy.
ICN also continues to trade its accounts receivable from the Yugoslav Government for other holdings.
These obligations were transferred periodically to Mr Bennett's firm; Refco's accounts then reflected a receivable from that entity.
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This will provide merchants cash in advance instead of them waiting 15-20 days to receive their receivables from the credit card companies.
7. Is it difficult for multinationals to collect receivables from local retailers?
The total loan portfolio, including receivables from credit cards, grew 39percenttoto 161.4 billion reais, from 116.2 billion in December 2006.
The deal is secured, Xerox said, by $266 million in lease receivables from the United States and $291 million from Canada.
MBIA has persuaded its auditors to let it book $2.1 billion in receivables from banks, although only one small bank has reached a settlement with the insurer.
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