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) $ 650,000 $ (275,000) Capital gain (loss) (9,800) 7,500 Section 1231 gain (loss) (1,450) 6,800

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.