The difference between the adjusted losses incurred reported in a property-casualty insurer's NAIC Annual Statement and the amount reported in its federal income tax return is due to which one of the following?
a. The deduction for reinsurance recovered during the year required on the annual statement
b. The deduction for salvage recovered during the year required on the annual statement
c. Present value discounts applied to loss reserves for income tax purposes
d. The exclusion of loss adjustment expenses for income tax purposes