Assume taxable income is the starting point for computing E & P. During 2015, Eagle Corporation had a capital loss of $50,000 and a capital gain of $20,000. The net capital loss of $30,000 could not be deducted in arriving at Eagle's taxable income for 2015. The $30,000 was carried over to 2016 and fully deducted in that year.

A. The excess capital loss reduces Eagle Corporation's E & P for 2016.

B. The excess capital loss of $30,000 would reduce Eagle Corporation's E & P in 2015.

C. The excess capital loss increases Eagle Corporation's E & P for 2015.

D. The excess capital loss has no effect on Eagle Corporation's E & P in 2016.

E. None of the above.