ParentCo Purchased All of the Stock of ChildCo on January

ParentCo purchased all of the stock of ChildCo on January 2, year 2, and the two companies filed consolidated returns for that year and thereafter. Both entities were incorporated in year 1. Taxable income computations for the members include the following. Neither group member incurred any capital gain or loss transactions during these years, nor did either member make any charitable contributions. No § 382 limit applies. $$\begin{array} { l c c c } \text { Year } & \begin{array} { c } \text { ParentCo's } \\\text { Taxable Income }\end{array} & \begin{array} { c } \text { ChildCo's Taxable } \\\text { Income }\end{array} & \begin{array} { c } \text { Consolidated } \\\text { Taxable Income }\end{array} \\\text { Year 1 } & \$ 10,000 & ( \$ 95,000 ) & \text { N/A } \\\text { Year 2 } & \$ 10,000 & \$ 50,000 & ? \\\text { Year 3 } & ( \$ 25,000 ) & \$ 40,000 & ? \\\text { Year 4 } & \$ 10,000 & \$ 10,000 & ?\end{array}$$ To what extent are ChildCo's year 1 losses used by the group in year 2-year 4?

A) $100,000
B) $95,000
C) $75,000
D) $0