Question about Master Exam question

[Salvador Cecilio]

I got this wrong on the second MasterExam that I downloaded.

Which two statements are true?
 
A. A non-static, method-local inner class can be marked abstract.
B. A method-local, anonymous inner class can be declared protected.
C. A method-local, inner class must be marked final.
D. A non-static, method-local inner class can access all members of the enclosing class.
E. A method-local anonymous inner class cannot extend an abstract class

I picked A and E.

Can anyone explain why this is wrong?

Thanks,

[Phani Kumar]

My answer is A and D. E is incorrect because Java doesnt restrict an inner class extending from another class, either abstract or concrete.