X Co$.$ invests $$100,000$ in an expansion project. If the company uses a subsidiary structure and the subsidiary loses $$30,000,$ explain the consequences to X Co$.$

Multiple Choice

X Co$.$ will have an allowable capital loss of $$15,000$ which it can use against any taxable capital gains.

X Co$.$ will be able to claim the $$30,000$ against its other profits.

X Co$.$ cannot use the loss in the subsidiary.

X Co$.$ will have an allowable business loss of $$15,000$ to claim against its other income.