yes, 301 pass on link history. your better off creating a page with the clients critical keyword in it and have relvant backlinks with strong anchor text keyword. also have backlink from your main domain to the page. the sudden amount of backlinks should cause too much of a problem, never has...
Sub-domains are treated as their own website, its allwas good seo practice to have your main keyword i.e donuts in the domain name google tends to relatively favor those websites.
Should probably check with another PR checker other than mozilla plugin, you may find its lower than the plugins telling you, other than that sell it ASAP. :D
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