Tugboats Corporation, a calendar year corporation that began doing business on January 1, 2005, had $35,000 in accumulated earnings and profits on January 1, 2011. Tugboats had an operating loss of $60,000 for the fi rst six months of 2011, but had $10,000 in earnings for the entire year. Tugboats made a distribution of $25,000 cash to its stockholders on April 1, 2011. What is the amount of Tugboat's accumulated earnings and profits on January 1, 2012?