As of December 31, 2016, Hardy Corp. has net income per books of $120,000, which includes straight-line depreciation expense of $5,000. Hardy Corp. claimed accelerated depreciation of $15,000 for tax purposes. Also included in book income were lobbying expenses of $4,000 and a Federal income tax refund of $5,000. What is Hardy Corp.’s current earnings and profits (E & P) for 2016?

a. $119,000
b. $109,000
c. $120,000
d. $114,000