Miami and Tampa Corporations comprise an affiliated group that has filed separate tax returns prior to the current year. In each case for the current year, determine each corporation’s tax liability if they file separate tax returns, and determine the group’s consolidated tax liability if they elect to file a consolidated tax return. Assume that, if the group elects to file a consolidated tax return, its consolidated taxable income equals the sum of Miami’s and Tampa’s separate taxable incomes.

a. Miami’s separate taxable income is $50,000, and Tampa’s separate taxable income is $30,000.

b. Miami’s separate taxable income is $70,000, and Tampa’s separate taxable income is $(15,000), i.e., a loss.