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Corporation P owns 9 3 percent of the outstanding stock of Corporation T . This year, the corporation s records provide the following information: Corporation

Corporation P owns 93 percent of the outstanding stock of Corporation T. This year, the corporations records provide the following information:
Corporation P Corporation T
Ordinary operating income (loss) $ 530,000 $ (215,000)
Capital gain (loss)(8,600)6,300
Section 1231 gain (loss)(1,300)5,600
Required:
Compute each corporations taxable income if each files a separate tax return.
Compute consolidated taxable income if Corporation P and Corporation T file a consolidated tax return.

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