For the purposes of step 4 in the table in section 705-60, the step 4 amount is the sum of all distributions made by the joining entity before the joining time that:
(a) the * head company receives directly, or would receive indirectly if entities interposed between the head company and the joining entity successively distributed any distribution they received immediately after receiving it; and
(b) were made out of profits:
(i) that did not accrue to the joined group before the joining time (see subsection 705-90(7)); or
(ii) that accrued to the joined group before the joining time and recouped losses of any * sort that accrued to the joined group before that time (see subsection 705-90(8)).
Note: As well as subsection 705-90(7), paragraph 705-90(9)(b) and subsection 705-90(10) are relevant to working out whether or not profits accrued to the joined group before the joining time.