Calendar year ParentCo purchased all of the stock of SubCo on January 1,2012,for $500,000.SubCo produced a loss
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Calendar year ParentCo purchased all of the stock of SubCo on January 1,2012,for $500,000.SubCo produced a loss for 2012 of $150,000 and distributed cash of $25,000 to ParentCo. In 2013,SubCo generated a loss of $450,000;in 2014,it recognized net income of $45,000.What is ParentCo's capital gain or loss if it sells all of its SubCo stock to a nongroup member on January 1,2015,for $50,000?
A) $130,000.
B) $50,000.
C) ($80,000).
D) ($50,000).
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
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