prepare income statements for par corporation assuming a that separate income tax re 571835

Comparative income statements (consolidated and separate tax returns)

Par Corporation and its 100 percent owned subsidiary, Sam Corporation, are members of an affiliated group with pretax accounting incomes as follows (in thousands):

The gain reported by Par relates to land sold to Sam during the current year. A flat 34 percent income tax rate is applicable.

REQUIRED: Prepare income statements for Par Corporation assuming (a) that separate income tax returns are filed and (b) that a consolidated income tax return is filed.