Clock corporation, an accrual-basis taxpayer, had earnings and profits of $65,000 on december 31, year 1.a review company records revealed the following information for year 2: taxable income per return $105,000 tax-exempt interest income 10,000 dividends paid to shareholders 32,000 federal income tax 38,000 gain recognized on installment sale made in year 2 (total gain on the sale was $35,000.)5,000 what are clock's earnings and profits as of december 31, year 2? a. $110,000 b. $130,000 c. $140,000 d. $172.000