Question Content AreaParentCo and SubCo report the following items of income and deduction for the...

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Accounting

Question Content AreaParentCo 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 2023 taxable income or loss computed on a separate basis.
ParentCo SubCo
a. $85,000 $3,000
b. $85,500 $3,000
c. $85,500 $5,000
d. $85,000 $5,000

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