Calendar year ParentCo purchased all of the stock of SubCo on January 1,2012,for $500,000.SubCo produced a loss for 2012 of $150,000 and distributed cash of $25,000 to ParentCo.In 2013,SubCo generated a loss of $450,000;in 2014,it recognized net income of $45,000.What is ParentCo's capital gain or loss if it sells all of its SubCo stock to a nongroup member on January 1,2015,for $50,000?
A)$130,000.
B)$50,000.
C)($80,000).
D)($50,000).

Question

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The Answer of Calendar year ParentCo purchased all of the stock of SubCo on January 1,2012,for $500,000.SubCo produced a loss for 2012 of $150,000 and distributed cash of $25,000 to ParentCo.In 2013,SubCo generated a loss of $450,000;in 2014,it recognized net income of $45,000.What is ParentCo's capital gain or loss if it sells all of its SubCo stock to a nongroup member on January 1,2015,for $50,000?
A)$130,000.
B)$50,000.
C)($80,000).
D)($50,000).

Calendar Year ParentCo Purchased All of the Stock of SubCo