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.
A)$107,000.
B)$108,000.
C)$108,900.
D)$115,800.
E)$121,000.

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.
A)$107,000. 
B)$108,000. 
C)$108,900. 
D)$115,800. 
E)$121,000.

Quizplus · Accepted Answer

To compute the consolidated taxable income or loss, we need to first add up the items of income and deduction for both ParentCo and SubCo.

Income:
ParentCo: $100,000
SubCo: $12,000

Deductions:
ParentCo: ($5,000)
SubCo: ($3,100)

Next, we need to combine the income and deductions of both companies:

Income: $100,000 + $12,000 = $112,000
Deductions: ($5,000) + ($3,100) = ($8,100)

Finally, we subtract the total deductions from the total income to get the consolidated taxable income:

$112,000 - $8,100 = $108,900

Therefore, the answer is C.

ParentCo and SubCo Had the Following Items of Income and Deduction