ParentCo owned 100% of SubCo for the entire year. ParentCo uses the accrual method of tax accounting, whereas SubCo uses the cash method. During the year, SubCo sold raw materials to ParentCo for $30,000 under a contract that requires no payment to SubCo until the following year. Exclusive of this transaction, ParentCo had income for the year of $35,000, and SubCo had income of $50,000. The groups consolidated taxable income for the year was: Select one:

a. $115,000.

b. $ 85,000.

c. $ 80,000.

d. $150,000.