comprehensive problem C: 8-67

P and S Corporations have filed consolidated tax returns for ten years. P and S use the

accrual method of accounting, and they use the calendar year as their tax year. P and S report separate return taxable income (before any consolidation adjustments and eliminations, the NOL deduction, the charitable contributions deduction, and the dividendsreceived deduction) for the current year of $200,000 and $250,000, respectively. These amounts include the following current year transactions and events: