This problem is from Federal income taxation of Corporations and Shareholder 7th edition (James S. Eustice) 5A (9)

The stock of X is owned equally by two shareholders: Y (an individual with a stock basis of $100) and A (an individual with stock basis of $40). X uses the accrual method, A and Y use the cash method, and all use the calendar year. (Assume 1059 does not apply). Use a 34% corporate tax rate in this problem. X has always been an S corporation. During the current year, X accrued income and expenses as follows:

Gross income from Busines $500

Dividends on AT&T stock (consider &243) $100

Interest on municipal bonds (&103) 100

Capital gain 100

Total $800

Deductible &162(a)(1) business expense 430

Noncaptial expenses not deductible under &162(e) 90

Capital losses (see &1211 (a) 146

Total 66

Net $134

Suppose that Y is an individual and that X has always been an S Corporation.

a) What is X's E&P?

For the answer can you please explain how do you get the result.