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 (10,000) § 1231 loss Capital gain Charitable contribution 20,000 12,000 1,000 Compute ParentCo and SubCo's current year taxable income or loss computed on a separate basis. ParentCo SubCo a. $81,000 $21,000 b. $81,000 $22,000 C. $70,000 $22,000 d. $70,000 $21,000 0000
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 (10,000) § 1231 loss Capital gain Charitable contribution 20,000 12,000 1,000 Compute ParentCo and SubCo's current year taxable income or loss computed on a separate basis. ParentCo SubCo a. $81,000 $21,000 b. $81,000 $22,000 C. $70,000 $22,000 d. $70,000 $21,000 0000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter16: Multijurisdictional Taxation
Section: Chapter Questions
Problem 1BCRQ
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Transcribed Image Text: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
(10,000)
§ 1231 loss
Capital gain
Charitable contribution
20,000
12,000
1,000
Compute ParentCo and SubCo's current year taxable income or loss computed on a separate basis.
ParentCo
SubCo
a.
$81,000
$21,000
b.
$81,000
$22,000
C.
$70,000
$22,000
d.
$70,000
$21,000
0000
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