WhaleCo acquired all of the common stock of MinnowCo early in year 1 for $900,000, and MinnowCo immediately elected to join WhaleCos consolidated Federal income tax return. As part of the takeover, WhaleCo also acquired $300,000 of MinnowCo bonds. The results of MinnowCo for the first few years of the group operations were reported as follows.

Tax YearOperating Gain/LossStock Basis

1$ 100,000

2 (800,000)

3(600,000)

Determine WhaleCos basis in its MinnowCo common stock as of the end of each tax year.