ParentCo and SubCo had the following items of income and deduction for the current year.
ParentCo's SubCo's Taxable
Item Taxable Income Income
Income (loss) from Operations $100,000 ($10,000)
§ 1231 Loss (5,000)
Capital Gain 15,000
Charitable Contribution 12,000
Compute ParentCo and SubCo's taxable income or loss computed on a separate basis.
ParentCo SubCo
a. $85,000 $5,000
a. None of the above.
b. $85,000 $3,000
c. $85,500 $5,000
d. $85,500 $3,000

Question

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The Answer of ParentCo and SubCo had the following items of income and deduction for the current year.
ParentCo's SubCo's Taxable
Item Taxable Income Income
Income (loss) from Operations $100,000 ($10,000)
§ 1231 Loss (5,000)
Capital Gain 15,000
Charitable Contribution 12,000
Compute ParentCo and SubCo's taxable income or loss computed on a separate basis.
ParentCo SubCo
a. $85,000 $5,000
a. None of the above.
b. $85,000 $3,000
c. $85,500 $5,000
d. $85,500 $3,000

ParentCo and SubCo Had the Following Items of Income and Deduction