$q,110.$ Calendar year ParentCo purchased all of the stock of SubCo on January $1,$ year $1,$ for $$500,000.$ In year $1,$ SubCo produced a loss of $$150,000$ and distributed cash of $$25,000$ to ParentCo. In year $2,$ SubCo generated a loss of $$450,000$; in year $3,$ it recognized net income of $$90,000.$ What is ParentCo's capital gain or $($loss$)$ if it sells all of its SubCo stock to a nongroup member on year $4$ for $$150,000?$

a$.$ $$185,000$

b$.$ $$150,000$

c$.($$$35,000)$

d$.($$$535,000)$

e$.$ All gain$/$loss is ordinary when subsidiary stock is sold.