P and S Corporations form in Year1, with S asP's wholly-owned subsidiary. The corporations immediately elect to file consolidated tax returns. The group reports the followingresults:

Taxable Income Group Member Year 1 Year 2 Year 3 Year 4 P $ 13,000 $ 21,000 $ 20,000 $ 30,000 5 (3,700) (34,000) (11,000) 1,900 Consolidated taxable income (before NOL deduction) _$ 4'30\" $ (13:00\") $ 9.000 $ 31,900