how do i consolidate subsidiary into parent company 1120 c

[dd4vols]

I get my final working trial balance complete (you will need for separate state returns), and then just put them on an excel spreadsheet column by column.  Add the columns to get a final "reportable' consolidated  WTB. and use that for 1120.  Sounds easy,.... but you need to eliminate intercompany receivables and payables... and eliminate profits on intercompany transactions.

The parent company files the consolidated tax return and all subsidiaries must begin to follow the tax year of the parent company. The affiliates are also responsible for providing certain information for the consolidated tax return. They must list their own tax information, such as taxable income and deductions. The affiliates must also then determine any transactions between companies. These transactions can include any lending, renting of property, or any goods or services bought or sold. Next, an affiliate has to report its net income or loss, disregarding any items that will be consolidated, to arrive at their separate taxable income.

Once the separate taxable income of all the affiliates is summed, the consolidated items are netted across the member companies.

If you are a member of the AICPA, they have an 18 page checklist that is very helpful.