Alpha and Beta Corporations comprise an affiliated group that has filed separate tax returns prior to the current year. The corporations report the following amounts for the current year:

Alpha€™s long-term capital gains include a $4,400 gain on land it sold to Beta during the current year. Beta had not sold the land by the end of the current year. The corporations have no other intercompany transactions and no capital loss carryovers. Ignore the U.S. production activities deduction.
a. Determine each corporation€™s current year taxable income if they file separate tax returns for the current year.
b. Determine the group€™s current year taxable income if the corporations elect to file a consolidated tax return.

Total Alpha s 20,000 (11,900) Transaction Beta s 15,000 Long-term capital gains Long-term capital losses Other separate taxable income S 35,000 (17,000) (28,900) 80,000 70,000 150,000