The Trio affiliated group consists of Trio, a New Jersey corporation, and its three wholly owned subsidiaries. This year, the four corporations report the following:
Net Income (Loss)
Trio …………………….. $ 412,000
Subsidiary 1 ……………. (180,000)
Subsidiary 2 ……………. 389,000
Subsidiary 3 ……………. 600,000
If Trio elects to file a consolidated return, compute consolidated taxable income assuming that:
a. Subsidiary 1 is a domestic corporation, and Subsidiaries 2 and 3 are foreign corporations.
b. Subsidiaries 2 and 3 are domestic corporations, and Subsidiary 1 is a foreign corporation.