ParentCo and SubCo Had the Following Items of Income and Deduction

question 37

Multiple Choice

ParentCo and SubCo had the following items of income and deduction for the current year. $\begin{array}{lcc}\text { Item } & \begin{array}{c}\text { ParentCo's } \\\text { Taxable Income }\end{array} & \text { SubCo's Taxable Income} \\\text { Income (loss) from Operations } & \$ 100,000 & \$ 10,000\\\S 1231 \text { Loss }&(10,000) \\\text { Capital Gain }&&12,000\\\text { Charitable Contribution } & 20,000 & 1,000\end{array}$ Compute ParentCo and SubCo's consolidated taxable income or loss.

• A)$91,000
• B)$100,800
• C)$112,000
• D)$122,000

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