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.

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Par Sam Sales Gain on sale of land Cost of sales Operating expenses Pretax accounting income $2,400 $1,400 100 (1,200) (700) (600) (500) $ 300 $ 600