Choice "a" is correct. The C corporation's income before net long-term capital loss is $90,000 ($150,000 + $35,000 - $95,000). For a corporation, a net long-term capital loss is not deductible in the current year (3-year carryback and 5-year carryforward allowed), so the taxable income is the same amount.

Choice "d" is incorrect. The $65,000 is the $90,000 less the $25,000 net long-term capital loss. The net long-term capital loss is not deductible in the current year, but it may be carried back 3 years and forward 5 years.

Choice "c" is incorrect. The $87,000 is the $90,000 reduced by a $3,000 long-term capital loss. Unfortunately, the $3,000 deduction is available only for individuals, not for C corporations.

Choice "b" is incorrect. The $115,000 is the $90,000 plus the $25,000 net long-term capital loss. The net long-term capital loss should not be deducted or added.