Refer to the IRSs ATG on Auto Dealership. Suppose a dealer sells a car to a customer for the following:

Sales Price (including Sales Tax and license fees) $10,000

Less: Down Payment 1,000

Balance to Be Financed $ 9,000

Finance Charge at 10% 900

Face amount of Installment Note $ 9,900

The dealer sells the note to a finance company who agrees to pay the dealer a 20% 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 9533, 360 US446, 79 SCt 1270, when is the amount held back taxable to the dealership?