Boulder corporation owns all of the stock of PebbleCo, so they constitute a federal affiliated group and a parent-subsidiary controlled group. By completing the following chart, delineate for boulders tax department some of the effects of an election to file federal consolidated income tax returns.

	Situation	If the group files a consolidated return	If separate income tax returns continue to be filed
A	PebbleCo pays a $1 million cash dividend to Boulder
B	Taxable income for both group members this year is $50,000
C	Boulders tax liability is $95,000 and Pebbles liability totals %75,000
D	Boulder uses the LIFO Method for its inventories, but Pebble wants to use FIFO for its own inventorier