If a taxable year of a member of a combined group differs from the taxable year of the combined group, the designated agent shall elect to determine the portion of that member’s income to be included in one of the following ways: 1.
(1)#
A separate income statement prepared from the books and records for the months included in the combined group’s taxable year.
(2)#
Including all of the income for the year that ends during the combined group’s taxable year.