Questions from Federal Taxation

Q: P Corporation owns all the stock of S and B Corporations.

P Corporation owns all the stock of S and B Corporations. The three corporations have filed consolidated tax returns on a calendar year basis for several years. S owns property it had purchased for $4...

Q: P Corporation owns all the stock of S1 and S2 Corporations,

P Corporation owns all the stock of S1 and S2 Corporations, and the three corporations have filed consolidated tax returns on a calendar year basis for several years. P owns 2,400 shares of publicly t...

Q: The AB Partnership purchases plastic components and assembles children’s toys. The

The AB Partnership purchases plastic components and assembles children’s toys. The assembly operation requires a number of special machines that are housed in a building the partnership owns. The part...

Q: P and S Corporations have filed consolidated tax returns for several years

P and S Corporations have filed consolidated tax returns for several years. In Year 1, P purchased land as an investment for $20,000. In Year 3, P sold the land to S for $60,000. S used the land for f...

Q: P owns all the stock of S1 and S2 Corporations. The

P owns all the stock of S1 and S2 Corporations. The corporations have filed consolidated tax returns for several years. In the current year (Year 1), S1 sells land to P for $100,000. S1 purchased the...

Q: P Corporation owns all of S Corporation’s stock. Both corporations use

P Corporation owns all of S Corporation’s stock. Both corporations use the accrual method of accounting, and they file a consolidated tax return. S provides cleaning services to P. In so doing, S char...

Q: P and S Corporations have filed consolidated tax returns on a calendar

P and S Corporations have filed consolidated tax returns on a calendar year basis for several years. Both corporations use the accrual method of accounting. On August 1 of the current year (Year 1), P...

Q: P and S Corporations have filed consolidated tax returns on a calendar

P and S Corporations have filed consolidated tax returns on a calendar year basis for several years. Both corporations use the accrual method of accounting. On January 1 of the current year, S begins...

Q: S and B corporations are members of an affiliated group that has

S and B corporations are members of an affiliated group that has filed consolidated tax returns for several years. S drills a water well for B in Year 1 and charges B $5,000 for the service. S incurs...

Q: P and S Corporations have filed consolidated tax returns for several years

P and S Corporations have filed consolidated tax returns for several years. In the current year (Year 1), P began selling inventory items to S. P and S use the first-in, first-out (FIFO) inventory met...