Mobile, Newark, and Omaha Corporations comprise an affiliated group that has filed separate tax returns prior to the current year. The corporations report the following amounts for the current year:

The corporations have no intercompany transactions, no capital loss carryovers, and no nonrecaptured net Sec. 1231 losses. Ignore the U.S. production activities deduction.
a. Determine each corporation€™s current year taxable income if they file separate tax returns for the current year.
b. Determine the group€™s current year taxable income if the corporations elect to file a consolidated tax return.

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Transaction Mobile Newark Omaha Total Sec. 1231 gains S 18,000 S 9,000 S-0- S 27,000 Sec. 1231 losses 12,000 3,500 (2,000) 14,000 26,000 Short-term capital gains Short-term capital losses Long-term capital gains Long-term capital losses Other separate taxable income 3,500 (8,200) 13,600 (6,200) 8,100 (7,300) 200,000 5,500 (2400) (9,700) 300,000 100,000 600,000