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Acct 424 Quiz 3 - 1 Question(TCO6) year...

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1. Question: (TCO 6) ParentCo and SubCo had the following items of income and deduction for the current  year:                                  ParentCo's                           SubCo's Taxable                           Item                                                 Taxable Income            Income                            Income (loss) from Operations                 $275,000           $135,000    § 1231 Loss                                          (50,000)            Capital Gain                                                                  90,000    Charitable Contribution                            60,000              40,000    Compute ParentCo and SubCo's  consolidated  taxable income or loss Your Answer: $450,000 $410,000. $405,000. CORRECT $350,000. None of the above. Instructor Explanation: Income from Operations ($275,000 + $135,000)       $410,000                § 1231 Gains and Losses and Capital Gains and                  Losses [($50,000) + $90,000]                    40,000                                                                                $450,000                  Charitable Contribution (10% TI limit)       (45,000                 Consolidated Taxable Income                 $405,000   Points Received: 2 of 2 Comments: 2.
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