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During the current year, Z Corporation accrued income and expenses as follows: Gross income from Business: $1000 Dividends on Apple Stock $300 Interest on State

During the current year, Z Corporation accrued income and expenses as follows:

Gross income from Business: $1000

Dividends on Apple Stock $300

Interest on State Bonds $300

Capital gain $300

Total $2400

Deductible business expenses 1290

Non Capital Expense,

Non deductible under 162 (e) 270

Capital Loss 438

Total 1998

Net $402

a. For the calculation of earnings and profits (E&P), the $300 state bond interest is includable

b. Accrued corporate tax will reduce E&P

c. The DRD on the Apple dividend at 70% is not deducted for E&P purposes.

d. All of the above

e. None of the aboe

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