. P Co. owns 100% of S Co. P sold goods to S at P's cost of 100 even though the goods were worth 200 (the price at which P sells comparable goods to unrelated parties). In unrelated transactions, S performs services for P without charge. These services cost S and have value of 90. Assume that S has an expiring NOL, while P has no NOL's or credit carryovers. The group does not file a consolidated return. What is the IRS likely to assert and what would be the consequences of the above transactions

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.