41. Volunteer Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distribution of land to its sole shareholder, Rocky Topp. The lands fair market value was $75,000 and its tax and E&P basis to Volunteer was $25,000. Rocky assumed a mortgage attached to the land of $15,000. The company had accumulated E&P of $750,000 at the beginning of the year.

c) Compute Volunteers accumulated E&P at the beginning of next year.

d) What amount of dividend income does Rocky report as a result of the distribution?

e) What is Rockys income tax basis in the land received from Volunteer?