Child Corporation joined the Thrust consolidated group in year 1. At the time it joined the group, Child held a $2 million NOL carryforward. On a consolidated basis, the members of Thrust generated significant profits for many years.

Child's operating results during the first few consolidated return years were as follows. The § 382 rules do not apply to the group.

Tax Year         Taxable Income

1 …………………… ($ 100,000)

2 ……………………  1,600,000

3 ……………………  1,800,000

How will Child's NOLs affect consolidated taxable income for each of these years? Is any refund available with respect to the NOL that Child brought into the group? Explain.