P Corporation owns all of S Corporations stock. Both corporations use the accrual method of accounting, and

Question:

P 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 charges P $6,000 for the services and incurs $5,000 of expenses to provide them. How does this transaction affect the group’s consolidated taxable income?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...