P Corporation owns all the stock of S1 and S2 Corporations. The corporations have filed calendar year,

Question:

P owns all the stock of S1 and S2 Corporations. The corporations have filed calendar year, consolidated tax returns for several years. On September 15 of the current year, P sells all of S1’s stock to Michelle, an unrelated individual. What effect does P’s sale of S1’s stock have on the P-S1-S2 group’s current year 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...