As of December , 20X14, Eliot Corp. has net income per books of $100,000, which includes municipal bond interest of $4,000, a deduction for business meals of $5,000, a deduction for a net capital loss of $5,000, and a deduction for federal income taxes of $22,000. What is Eliot Corp.'s current earnings and profits (Current E&P) for 20X14?

a. $98,500

b. $107,500

c. $125,500

d. $102,500

_{Sources: Chapter 5 - Roger CPA Review Question 2}

_{South-Western Federal Taxation 2016: Corporations, Partnerships, Estates & Trusts (Corporations, Partnerships, Estates and Trusts)}

_{ISBN-13: 978-1305399884}

_{ISBN-10: 1305399889}