Clock Corporation, an accrual-basis taxpayer, had earnings and profits of $65,000 on December 31, Year 1.A review company records revealed the following information for Year 2: Taxable income per return $105,000 Tax-exempt interest income 10,000 Dividends paid to shareholders 32,000 Federal income tax 38,000 Gain recognized on installment sale made in Year 2 (Total gain on the sale was $35,000.)5,000 What are Clock's earnings and profits as of December 31, Year 2? $110,000 $130,000 $140,000 $172.000