ParentCo purchased all of the stock of SubCo on January 1,2009,for $500,000.SubCo produced a loss for 2009 of $150,000 and distributed cash of $25,000 to ParentCo.In 2010,SubCo generated a loss of $750,000;in 2011,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 1,2012,for $50,000?
A)$50,000.
B)$430,000.
C)($380,000).
D)($500,000).

Question

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The Answer of ParentCo purchased all of the stock of SubCo on January 1,2009,for $500,000.SubCo produced a loss for 2009 of $150,000 and distributed cash of $25,000 to ParentCo.In 2010,SubCo generated a loss of $750,000;in 2011,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 1,2012,for $50,000?
A)$50,000.
B)$430,000.
C)($380,000).
D)($500,000).

ParentCo Purchased All of the Stock of SubCo on January