subsidiary
(3) Other definitions For purposes of this subsection— (A) Disqualified separately computed income The term “disqualified separately computed income” means the portion of the separately computed taxable income of the subsidiary which does not exceed the dividends distributed by the subsidiary during the taxable year on applicable preferred stock. (B) Separately computed taxable income The term “separately computed taxable income” means the separate taxable income of the subsidiary for the taxable year determined— (i) by taking into account gains and losses from the sale or exchange of a capital asset and section 1231 gains and losses, (ii) without regard to any net operating loss or capital loss carryover or carryback, and (iii) with such adjustments as the Secretary may prescribe. (C) Subsidiary The term “subsidiary” means any corporation which is a member of an affiliated group filing a consolidated return other than the common parent. (D) Applicable preferred stock The term “applicable preferred stock” means stock described in section 1504(a)(4) in the subsidiary which is— (i) issued after November 17, 1989 , and (ii) held by a person other than a member of the same affiliated group as the subsidiary.