Oakland Corporation Reported a Net Operating Loss of $500,000 in Year

Multiple Choice

Oakland Corporation reported a net operating loss of $500,000 in year 1.Not included in the year 1 taxable income computation was a disallowed entertainment expense of $20,000, tax-exempt income of $10,000, and deferred gain on an installment sale of $250,000.The corporation's current earnings and profits for year 1 would be:

A) $(500,000) .
B) $(720,000) .
C) $(510,000) .
D) $(260,000) .