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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Definitions:

Majority Rule

A decision-making principle where the option that receives more than half of the votes is selected or adopted.

Adversarial

Pertaining to a competitive or oppositional situation where parties are in conflict or competition.

Trade Unions

Organizations formed by workers from related fields that aim to protect their collective interests and improve working conditions, wages, and benefits through collective bargaining.

Social Harmony

The state of peaceful coexistence and cooperation within a society, where conflicts are minimized and collective welfare is prioritized.