Final answer:
A) Tax-exempt interest is usually excluded from taxable income but must be included when calculating a corporation's Earnings and Profits (E&P), contrasting with other items like charitable contributions, capital gains, and rental income that have different rules and limitations.
Step-by-step explanation:
The income that is excluded from taxable income but is included in Earnings and Profits (E&P) for corporations typically comprises items that may be exempt from tax or treated differently for corporate purposes compared to individual income taxes. Among those listed, A) Tax-exempt interest is the item that is generally excluded from an individual's taxable income but must be added back to compute a corporation's E&P. This is because, for corporations, even though the interest from certain securities like municipal bonds may not be taxed, it is still considered part of the economic performance of the company and included in E&P. Charitable contributions (B) may provide a deduction from taxable income but are generally limited in scope and have special rules for inclusion in E&P, not outright excluded. Capital gains (C) and Rental income (D) are typically included in both taxable income and E&P, subject to different rules and treatments concerning their recognition.