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)	$ 690,000	$ (295,000)
Capital gain (loss)	(7,200)	7,900
Section 1231 gain (loss)	(1,850)	7,600

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.