ParentCo and SubCo Had the Following Items of Income and Deduction

ParentCo and SubCo had the following items of income and deduction for the current year. $$\begin{array} { l c c } \text { Item } & \begin{array} { c } \text { ParentCo's } \\\text { Taxable Income }\end{array} & \begin{array} { c } \text { Sub Co's Taxable } \\\text { Income }\end{array} \\\text { Income (loss) from Operations } & \$ 100,000 & ( \$ 10,000 ) \\\$ 1231 \text { Loss } & ( 5,000 ) & \\\text { Capital Gain } & & 15,000 \\\text { Charitable Contribution } & 12,000 &\end{array}$$ Compute ParentCo and SubCo's taxable income or loss computed on a separate basis. ParentCo SubCo

A) $85,000 $5,000
B) $85,000 $3,000
C) $85,500 $5,000
D) $85,500 $3,000
E) None of the above.