13. LO.2 In determining Blue Corporation’s current E & P for the current tax year, how should taxable income be adjusted as a result of the following transactions?

a. A capital loss carryover from one year ago, fully used this year.

b. Nondeductible business meal expenses.

c. Interest income on municipal bonds.

d. Nondeductible lobbying expenses.

e. Loss on a sale between related parties.

f. Federal income tax refund from last year’s return, received this year.