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 year Operating Gain/Loss Basis

1	100,000	-----
2	(800,000)	-----
3	(600,000)	-----

Please do not use the answers from when this question was asked before because they are WRONG