home / study / business / accounting / accounting questions and answers / 1. parentco and subco report the following items of income and deduction for the current year. ...

Your question has been answered

Let us know if you got a helpful answer. Rate this answer

Question: 1. ParentCo and SubCo report the following items of income and deduction for the current year. ...

1. ParentCo and SubCo report the following items of income and deduction for the current year.

	ParentCo's	SubCo's Taxable
Item	Taxable Income	Income
Income (loss) from operations	$100,000	($10,000)
1231 loss	(5,000)
Capital gain		15,000
Charitable contribution	12,000

Compute ParentCo and SubCo's consolidated taxable income or loss.

a.$90,000

b.$81,000

c.$88,000

d.$90,500

Please show adjustments