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

Par Sam

Sales .................................... $4,800 .................. $2,800

Gain on sale of land ...................... 200 ....................... -

Cost of sales ........................... (2,400) .................. (1,200)

Operating expenses ................... (1,400) .................. (1,000)

Pretax accounting income ............ $1,200 .................... $ 600

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

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.