What is ps basis for its s stock at the end of the current

Reference no: EM133472337

Question: P Corporation purchases 100% of S Corporation's stock for $2 million on January 1 of the current year. The corporations elect to file a consolidated tax return. During the current year, S reports $350,000 of taxable income and $30,000 of tax-exempt interest income, and it distributes a $100,000 dividend to P. Each corporation pays its portion of the consolidated tax liability. The corporate tax rate is 21%. What is
P's basis for its S stock at the end of the current year?

Reference no: EM133472337

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