Tim Corporation (a calender year taxpayer) has taxable income of $300,000,and its financial records reflect the following for the year.

Federal income taxes paid $110,000

Net Operating loss carryforward from previous year deducted currently 70,000

Gain recognized this year on an installement sale form a prior year 44,000

Depreciation deducted on tax return (ADS depreciation would have been 40,000

$10,000)

Interest income on Iowa state bonds 8,000

Tim Corporation's current E&P is:

a. $254,000.

b.$214,000.

c.$194,000.

d.$104,000.

Please explain and show all calculations.