ParentCo and SubCo Had the Following Items of Income and Deduction

question 8

Multiple Choice

ParentCo and SubCo had the following items of income and deduction for the current year: $\begin{array}{ccc} & \text { ParentCo's } & \text { SubCo's Taxable } \\\text { Item } & \text { Taxable Income } & \text { Income } \\\hline \text { Income (loss) from Operations }&\$170,000&\$45,000\\\S 1231 \text { Loss }&(45,000) &40,000\\\text { Charitable Contribution }&25,000&15,000\end{array}$ Compute ParentCo and SubCo's consolidated taxable income or loss.

• A)$215,000
• B)$210,000.
• C)$189,000.
• D)$170,000.
• E)None of the above.

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Definitions:

Conductance Testers

Devices used to measure the ability of an electrolyte solution, such as battery acid, to conduct electricity, often used in automotive battery diagnostics.

Generator Output

The amount of electrical energy produced by a generator, measured in watts or kilowatts.

Fully Charged

The status of a battery or cell when it has reached its maximum electrical storage capacity.

12-Volt Battery

A common type of battery used in vehicles to power the electrical system, typically lead-acid based, providing energy for starting and accessories.