On July 1, 2020, P Corporation acquired all the stock of T Corporation, a US corporation, for $42,000 and included T Corporation in its US Consolidated tax return. On the acquisition date, T had accumulated earnings and profits of $14,000. During the period July 1-December 31, 2020, T Corporation incurred a taxable loss of $8,000. T Corporation had earnings of $2,000 in 2021, and made a distribution of $4,000 to P Corporation on October 1.

1. Determine Ps basis in T stock as of December 31, 2021.

2. What were the requirements for T to be included in P Corporation's US consolidated tax return?