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The Triple Plus affiliated group consists of Triple Plus, a North Dakota corporation, and its three wholly-owned subsidiaries. In 2015, the four corporations report the

The Triple Plus affiliated group consists of Triple Plus, a North Dakota corporation, and its three wholly-owned subsidiaries. In 2015, the four corporations report the following net income (loss).

Triple Plus

$1,200,000

Subsidiary 1

400,000

Subsidiary 2

(300,000)

Subsidiary 3

600,000

None of the subsidiary companies paid dividends to the parent company.

If Triple Plus elects to file a consolidated U.S. tax return, compute consolidated taxable income assuming that subsidiaries 1 and 2 are domestic corporations and subsidiary 3 is a foreign subsidiary.

$1,300,000

$800,000

$900,000

$1,900,000

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