ParentCo and SubCo Had the Following Items of Income and Deduction

question 112

Multiple Choice

ParentCo and SubCo had the following items of income and deduction for the current year. $$\begin{array} { l c c } & \text { ParentCo's } & \text { SubCo's Taxable } \\\text { Item } & \text { Taxable Income } & \text { Income } \\\text { Income (loss) from Operations } & \$ 100,000 & ( \$ 10,000 ) \\\S 1231 \text { Loss } & ( 5,000 ) & \\\text { Capital Gain }&& 15,000\\\text { Charitable Contribution } & 12,000 \end{array}$$ Compute ParentCo and SubCo's consolidated taxable income or loss.

• A)$81,000
• B)$88,000
• C)$90,000
• D)$90,500

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Definitions:

Identical Twin

Monozygotic twins who develop from a single fertilized egg, sharing 100% of their genes.

Biological Parent

The parent who contributes the genetic material to the offspring, either through natural conception or genetic contribution in assisted reproduction.

Schizophrenia

A complex, chronic mental health disorder characterized by disturbances in thought, perception, emotions, and behavior.

Hypochondriasis

A psychological disorder characterized by excessive preoccupation with the fear of having a serious disease, despite medical reassurance otherwise.