ParentCo and SubCo had the following items of income and deduction for the current year. Compute ParentCo and SubCo's consolidated taxable income or loss.

Name: ParentCo and SubCo had the following items of income and deduction for the current year. Compute ParentCo and SubCo's consolidated taxable income or loss.
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Question

ParentCo and SubCo had the following items of income and deduction for the current year.  Compute ParentCo and SubCo's consolidated taxable income or loss.

Quizplus · Accepted Answer

ParentCo's taxable income = $70,000 - $20,000 = $50,000
SubCo's taxable income = $55,000 - $10,000 - $5,000 = $40,000
Consolidated taxable income = $50,000 + $40,000 = $90,000

ParentCo and SubCo Had the Following Items of Income and Deduction