Parentco owns 100% of Subco and they file consolidated tax returns. On June 1, 2019 Parentco sells

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Parentco owns 100% of Subco and they file consolidated tax returns. On June 1, 2019 Parentco sells Subco some land for $200. The land's tax basis to Parentco is $40. On March 1, 2020 Subco sells the land to an unrelated party for $700

What year will Parentco and Subco recognize the income in year?
What is the intercompany item?
What is the corresponding item?
What is the recomputed corresponding item?
What is Parentco's recognized profit from the transaction?

Posted Date: May 18, 2024 06:07 PM

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Parentco owns 100% of Subco and they file consolidated tax returns. On June 1, 2019 Parentco sells

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