Refer to the IRS's ATG on Auto Dealership.

Suppose a dealer sells a car to a customer for the following:

The dealer sells the note to a finance company who agrees to pay the dealer a 20 percent commission on the finance charge, or \(\$ 180\).

a. What is the correct entry to make?

b. Referring to J.R. Hansen, SCt, 59-2 USTC I9533, 360 US 446, 79 SCt 1270, when is the amount held back taxable to the dealership?

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Sales Price (including Sales Tax and license fees) $10,000 Less: Down payment Balance to be Financed 1,000 $9,000