3. Cannoli Corp. is the parent of its subsidiary, Carac Corp, and the corporations have ?ledconsolidated tax returns since Year 3. In Year 4 Carac sells to Cannoli land worth $90,000 (basis$50,000) at a selling price of $90,000. In Year 6 Cannoli sells the land to an unrelated third party for$120,000, its fair market value at that tirne. What amount of gain is recognized on Cannoli andCarac's Year 4 and Year 6 consolidated tax returns, respectively? Year 4 Year 6a) $0 $30,000b) $40,000 $30,0000) $90,000 $30,000 d) $0 $70,000