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 and elected to carry the loss forward to year 2. Not included in the computation was a disallowed meals and 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)