ParentCo and SubCo had the following items of income and deduction for the current year.

Compute ParentCo and SubCo's consolidated taxable income or loss.

Name: ParentCo and SubCo had the following items of income and deduction for the current year. Compute ParentCo and SubCo's consolidated taxable income or loss.
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Question

ParentCo and SubCo had the following items of income and deduction for the current year.

Compute ParentCo and SubCo's consolidated taxable income or loss.

Quizplus · Accepted Answer

ParentCo's taxable income is $80,000 ($100,000 - $20,000) and SubCo's taxable loss is $2,000. Therefore, the consolidated taxable income is $78,000 ($80,000 - $2,000) which is option B.

ParentCo and SubCo Had the Following Items of Income and Deduction