Common use of X Corp Clause in Contracts

X Corp. acquires a certain piece of equipment (which is new section 38 property) for use in its business. Within 3 months, X sells a 70 percent undivided inter- est in the property to lessor A and a 10 per- cent undivided interest in the property to lessor B and leases both portions back under separate section 168(f)(8) leases. The invest- ment tax credit and ACRS deductions associ- ated with the property will be divided among X, lessor A, and lessor B, on a basis of 20 per- cent, 70 percent, and 10 percent, respectively.