X Co. (not a personal service corporation) has accumulated earnings of $100,000 and current earnings of $800,000.

X Co.'s dividends paid deduction is $60,000 and reasonable business needs amount to $450,000.

1. X Co.'s accumulated earnings credit is

None of these.

$150,000.

$350,000.

$450,000.

2. If X Co. also had after-tax net capital gains totaling $375,000, its accumulated earnings credit would be

0

$75,000.

$150,000.

None of these.