10) Joshua and David purchased real property for $520,000 as equal tenants in common. Although they are listed as equal co-owners, Joshua was only able to provide $208,000 of the purchase price. David treated the additional $104,000 of his contribution to the purchase price as a gift to Joshua. If the property is worth $2.7 million at Joshua's death, what amount would be included in Joshua's estate?

11) Otter Corporation reported taxable income of $400,000 from operations for 20X3. The company paid federal income taxes of $136,000 on this taxable income. During the year, the company made a distribution of land to its sole shareholder, Emmet Jugg. The land's fair market value was $50,000 and its tax and E&P basis to Otter was $30,000. Emmet assumed a mortgage attached to the land of $10,000. Any gain from the distribution will be taxed at 34%. The company had accumulated E&P of $900,000 at the beginning of the year. Compute Otter's total taxable income and federal income tax paid because of the distribution (assume a tax rate of 34%). Using your solution, compute Otter's current E&P for 20X3.