On January 1, 2014, Steinem Corporation established a special purpose entity to buy $1 million of accounts

Question:

On January 1, 2014, Steinem established a special purpose entity to buy $1 million of from Steinem. Investors have invested in the special purpose entity to benefit from the return on assets and certain tax advantages. The special purpose entity has used the cash invested by the investors to purchase the $1 million of from Steinem.
(a) Has Steinem's liquidity improved as a result of this transaction?
(b) Will Steinem's statement of financial position show increased debt or equity as a result of this transaction?
(c) What type of transaction is this, and from the perspective of an investor, what is the related risk?
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