The Parent consolidated group reports the following results for the tax year.

Entity	Income or Loss
Parent	$10,000
Sub1	(1,500)
Sub2	4,000
Sub3	2,000

If required, round your answers to nearest whole dollar. If an amount is zero, enter "0".

a. Assuming a 35% marginal tax rate, what is the group's consolidated taxable income and consolidated tax liability?

If the relative taxable income method, the consolidated taxable income is $14,500 and the total consolidated tax liability is $_________. (this answer is not $4350)

b. If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3?

Entity	Income or Loss
Parent	$______ (not $2719)
Sub1	$0
Sub2	$______ (not 1088)
Sub3	$______ (not 544)