(a) To arrive at Oklahoma taxable income on a Consolidated Return, the group's consolidated income, loss or deductions shall be determined in accordance with the provisions of 68 O.S. 2358 and 68 O.S. 2362. Therefore, each member of the group shall determine its Oklahoma net taxable income by whatever method is proper (direct accounting, unitary, etc.) and then, the net taxable income of each member shall be aggregated into a taxable total.Example: The Federal Net Income reported for the following groups of corporations was as follows:Assume only corporations (A), (B) and (C) operate in Oklahoma. Also assume corporation (A) and (C) are unitary business while corporation (B) is not of a unitary nature and is on direct accounting. If, in this example, Oklahoma's portion, using the three factor formula, was 10% and 5% for corporations (A) and (C) respectively, and $2,500.00 of Corporation (B) income was earned from sources in Oklahoma, the computation of Oklahoma's taxable income is as follows:

(b) The correct procedure for filing a combined return is as follows:

1. (1) Only one (1) "page 1" of Form 512 will be used as the tax computation and transmittal page for the combined group.
2. (2) Immediately behind page 1 will be a summary schedule reflecting each member of the combined group's name, Federal Employer's Identification Number (EIN) and net Oklahoma taxable income or loss as computed on separate schedule A or B for each company as applicable. The net income or loss from the summary sheet will be the amount shown on line 1 page 1 of Form 512. The accrual of Oklahoma Income Tax, if any, will be computed on the combined net income as shown on the summary sheet.
3. (3) Supporting schedules such as Investment/New Jobs Credit and Gas Used In Manufacturing will follow the summary sheet. There will be a separate schedule for each company in the group with identifying name and EIN number. The total credit amounts, if any, will be combined and brought forward to the proper line on page 1 of the Form 512.
4. (4) Behind the supporting schedules will be a separate Schedule A or B, as applicable for each company in the group, for the Oklahoma Form 512. The amounts shown on the separate schedules A or B will be the amounts brought forward to the summary sheet. Each company's name and EIN number will be shown on each respective schedule A or 13.
5. (5) Behind the Schedules A or B will be all other forms and schedules such as the Federal Form 1120 and supporting schedules for each company in the group.