Choice "A" is correct. Net capital losses are not allowable deductions for corporations. A corporation can only use capital losses to offset capital gains. Further, the deduction for charitable contributions may be limited in some cases, and no charitable contribution deduction is allowed in calculating the NOL. The facts of this question indicate that there are no reported capital gains or losses or charitable contributions for any of the consolidated entities; therefore, we know that we are able to use the total income (loss) identified in the facts to calculate the net operating loss. When entities file consolidated income tax returns, 100% of their net income (losses) is consolidated. The facts do not indicate that any inter-company transactions exist; therefore, there are no elimination entries to make before consolidating the net income (loss). The consolidated net operating loss is calculated as follows:

Choice "d" is incorrect. A consolidated net loss of $50,000 exists, as calculated above.
Choice "c" is incorrect. A consolidated net loss of $50,000 exists, as calculated above.
Choice "b" is incorrect. The income from ParentCo. ($50,000) is netted with the losses from the subsidiaries ($100,000) to arrive at the consolidated net operating loss of $50,000.