(1) This section has effect for working out the * available fraction for a * bundle of losses if:
(a) an entity (the ex-head company ) becomes a * subsidiary member of a * consolidated group (the bigger group ) at a time (the joining time ); and
(b) just before the joining time the ex-head company was the * head company of another consolidated group (the old group ); and
(c) at the joining time the losses are transferred under Subdivision 707-A from the ex-head company to the head company of the bigger group.
(2) Work out the ex-head company's * modified market value or * market value as if each * member of the bigger group that had been a * subsidiary member of the old group just before the joining time were a part of the ex-head company, and not a separate member of the bigger group, when the transfer occurred.
(3) Also, work out the ex-head company's * modified market value as if each * subsidiary member of the old group had been a part of the ex-head company while it was a subsidiary member of the old group.