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)	$ 550,000	$ (225,000)
Capital gain (loss)	(8,800)	6,500
Section 1231 gain (loss)	(1,500)	6,000

Required:

1. Compute each corporations taxable income if each files a separate tax return.
2. Compute consolidated taxable income if Corporation P and Corporation T file a consolidated tax return.