Choice "C" is correct. $336,800 should be reported as Shaw's current-year taxable income, reconciled as follows on Shaw's Schedule M-1 on the Form 1120:

Choice "a" is incorrect. This answer is the amount of book income without any adjustments.
Choice "b" is incorrect. This answer adds back the federal income tax expense paid of $110,100 (as is proper) and also deducts the entire $20,000 of tax amortization as additional expense (which is not proper because $7,500 of this amount is already deducted from the book income).
Choice "d" is incorrect. This answer adds back the federal income tax expense of $110,100 but does not deduct the additional $12,500 of tax amortization for the year.