Red Corporation, a calendar year taxpayer, has taxable income of $600,000. Among its transactions for the year are the following:
Collection of proceeds from insurance policy on life of corporate
officer (in excess of cash surrender value) $10,000
Realized gain (not recognized) on an involuntary conversion 5,000
Nondeductible fines and penalties 35,000
Disregarding any provision for Federal income taxes, Red Corporation's current E & P is:
a. $565,000.
b. $575,000.
c. $580,000.
d. $650,000.
e. None of the above.