During the current year, Z Corporation accrued income and

During the current year, Z Corporation accrued income and expenses as follows: Gross income from Business $1,000 Dividends on Apple Stock 300 Interest on State Bonds 300 Capital Gain 300 Total 2,400 Deductible Business Expenses 1,290 Non-Capital Expenses, Non-Deductible under 162(e) 270 Capital Losses 438 Total 1,998 Net $ 402 

a. For the calculation of earnings and profits (E&P), the net capital loss is currently deductible. 

b. Accrued corporate tax does not reduce E&P. 

c. The DRD on the Apple dividend at 70% is deducted for E&P purposes. 

d. All of the above 

e. None of the above