Azure Corporation leaves the Colorful Corporation Federal consolidated.docx

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Azure Corporation leaves the Colorful Corporation Federal consolidated retum group on the last day of year 1 . As a result: a. Azure's leaving the group is effective only when iRS permission to do so is granted. b. Azure's tax results are included in the group's consolidated Form 1120 for the final time for year 2 . c. The existing Colorful consolidation election is terminated. d. Azure files its own Form 1120 beginning with year 2 . .

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