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

Gross income from Business 1,000

Dividends on Apple Stock 300

Interest on State Bonds 300

Capital gain 300

Deductible Business Expenses 1,290

Non-Capital Expenses

Non Deductible under 152(e) 270

Capital Losses 438

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Total 1,998

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Net $402

a. For the calculation of earnings and profits (E&P), net capital loss is currently deductible.

b. Accrued corporate tax does not reduce E&P

c. The DRD on the Apple dividend at 70% is deducted for E&P purposes.

d. All of the above

e. None of the above

**Explain