ParentCo and SubCo Recorded the Following Items of Income and Deduction

question 98

Multiple Choice

ParentCo and SubCo recorded the following items of income and deduction for the current tax year. $$\begin{array} { l c c } \text { Item } & \begin{array} { c } \text { ParentCo's } \\\text { Taxable Income }\end{array} & \begin{array} { c } \text { SubCo's Taxable } \\\text { Income }\end{array} \\\text { Income (loss) from operations } & \$ 100,000 & \$ 20,000 \\\S 1231 \text { loss } & ( 8,000 ) & \\\text { Capital gain (loss) } & ( 10,000 ) & 14,000 \\\text { Charitable contribution } & 20,000 & 1,000\end{array}$$ Compute ParentCo and SubCo's consolidated taxable income or loss.

• A) $95,000
• B) $99,000
• C) $104,400
• D) $116,000
• E) $120,000

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Definitions:

Lateral Inhibition

The pattern of interaction among neurons in the visual system in which activity in one neuron inhibits adjacent neurons’ responses.

Light Intensities

The measure of the wavelength and power output of light sources, impacting visibility and perception.

Fovea

A small depression in the retina of the eye where visual acuity is highest due to the concentration of cones.

Photoreceptors

Specialized cells in the retina of the eye that convert light into electrical signals, enabling vision.