Abbot Corporation Reported a Net Operating Loss of $400,000 in Year

Multiple Choice

Abbot Corporation reported a net operating loss of $400,000 in year 1.Included in the year 1 taxable income computation were regular depreciation of $100,000 (E&P depreciation is $40,000) , and a dividends received deduction of $15,000.The corporation's current earnings and profits for year 1 would be:

A) $(325,000) .
B) $(340,000) .
C) $(400,000) .
D) $(355,000) .