Questions from Federal Taxation

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. The group had no intercompany inventory sales before the current year (Year 1). P and S use the first-in, first-out (FIFO) i...

Q: Topeka and Wichita Corporations have filed consolidated tax returns for several years

Topeka and Wichita Corporations have filed consolidated tax returns for several years. Topeka and Wichita report current year taxable incomes (without regard to any dividend income received, charitabl...

Q: Mobile, Newark, and Omaha Corporations comprise an affiliated group that

Mobile, Newark, and Omaha Corporations comprise an affiliated group that has filed separate tax returns prior to the current year. The corporations report the following amounts for the current year:...

Q: List five advantages and five disadvantages of making an S election.

List five advantages and five disadvantages of making an S election. Briefly explain each item.

Q: Alpha and Beta Corporations comprise an affiliated group that has filed separate

Alpha and Beta Corporations comprise an affiliated group that has filed separate tax returns prior to the current year. The corporations report the following amounts for the current year: Alphaâ...

Q: P, S, and T Corporations have filed consolidated tax returns

P, S, and T Corporations have filed consolidated tax returns for several years. P, S, and T report taxable incomes or losses (without regard to any dividends received and dividends-received deductions...

Q: Miami and Tampa Corporations comprise a parent-subsidiary controlled group.

Miami and Tampa Corporations comprise a parent-subsidiary controlled group. The corporations also comprise an affiliated group that has filed separate tax returns prior to the current year. In each ca...

Q: Dallas and Houston Corporations comprise an affiliated group that formed at the

Dallas and Houston Corporations comprise an affiliated group that formed at the beginning of the current year. The following items pertain to Dallas and Houston for the current year: Determine each c...

Q: Peoria and Salem Corporations have filed consolidated tax returns for several years

Peoria and Salem Corporations have filed consolidated tax returns for several years. For the current year, consolidated adjusted current earnings are $750,000. Consolidated preadjustment alternative m...

Q: P and S Corporations form in Year 1, with S as

P and S Corporations form in Year 1, with S as P’s wholly-owned subsidiary. The corporations immediately elect to file consolidated tax returns. The group reports the following resul...