Aaron and Michele, equal shareholders in Cavalier Corporation, receive $25,000 each in distributions on December 31 of the current year. During the current year, Cavalier sold an appreciated asset for $60,000 (basis of $15,000). Payment for the sale of the asset will be made as follows: 50% next year and 50% in the following year, with interest payable at a rate of 6 percent. Before considering the effect of the asset sale, Cavaliers current year E & P is $40,000 and it has no accumulated E & P. What is Cavaliers E&P for the current year after the sale?

	a.	$100,000
	b.	$70,000
	c.	$85,000
	d.	$73,600
	e.	None of the above