P Corporation uses the calendar year as its tax year and the accrual method as its overall accounting method S Corporation uses a fiscal year ending June 30 as its tax year and the cash method as its overall accounting method On July 31, 2015, P acquires all of S 's stock, and the P S affiliated gr...

a The calendar year S must change its tax year to the calendar year because the consolidated g ...

P Corporation uses the calendar year as its tax year and the accrual method as its overall

Question:

P uses the calendar year as its tax year and the accrual method as its overall accounting method. S uses a fiscal year ending June 30 as its tax year and the cash method as its overall accounting method. On July 31, 2015, P acquires all of S's stock, and the P-S affiliated group elects to file a consolidated tax return for 2015.
a. What tax year must the group use in filing its consolidated tax return?
b. What overall accounting method(s) can P and S Corporations use?
c. What tax returns must the corporations file?
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...