ParentCo and SubCo had the following items of income and deduction for the current year. ParentCos SubCos 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 SubCos taxable income or loss computed on a separate basis. ParentCo SubCo

a. $85,000 $5,000

b. $85,000 $3,000

c. $85,500 $5,000

d. $85,500 $3,000

e. None of the above.

Explain