ParentCo and SubCo Recorded the Following Items of Income and Deduction

question 97

Multiple Choice

ParentCo and SubCo recorded the following items of income and deduction for the current tax year. $$\begin{array} { l c c } & \text { ParentCo's } & \text { SubCo's Taxable } \\\text { Item } & \text { Taxable Income } & \text { Income } \\\text { Income (Loss) from Operations } & \$ 100,000 & \$ 20,000 \\\S 1231 \text { Loss } & ( 8,000 ) & \\\text { Capital Gain (Loss) } & ( 10,000 ) & 14,000 \\\text { Charitable Contribution } & 20,000 & 1,000\end{array}$$ Compute ParentCo and SubCo's taxable income or loss computed on a separate basis. ParentCo SubCo

• A)$78,300 $30,600
• B)$80,000 $33,000
• C)$81,000 $33,000
• D)$82,800 $30,600
• E)$82,800 $33,000

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