Owl Corporation,a Calendar Year Taxpayer,has a Beginning Balance in Accumulated

Owl Corporation,a calendar year taxpayer,has a beginning balance in accumulated E & P of $3.5 million and current earnings of $1 million.If Owl can justify accumulations for the needs of the business of $3.7 million,its accumulated earnings credit for ATI purposes is:

A) $0.
B) $200,000.
C) $250,000.
D) $3.7 million.
E) None of the above.