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:

Genetic Makeup

The unique set of genes that an individual inherits from both parents, determining various biological traits and predispositions.

Physical Decline

The gradual reduction in the strength, flexibility, and endurance of the body as a part of the aging process.

Inevitable

Something that is certain to happen; unable to be avoided or escaped.

Health Care Costs

The expenses related to the provision of health care services, including the costs of medical procedures, medications, hospital stays, and insurance.