5. Cardinal Corporation, a calendar year taxpayer, receives dividend income of $250,000 from a corporation in which it holds a 10\% interest. Cardinal also receives interest income of $35,000 from municipal bonds. (The municipality used the proceeds from the bond issue to construct a library.) Cardinal borrowed funds to purchase the municipal bonds and pays $20,000 of interest on the loan. Excluding these three items, Cardinal's taxable income is $500,000. Cardinal has $150,000 of accumulated E \& P at the end of the prior year, and it paid Federal income taxes of $131,250 during the year. (LO.1, 2) a. What is Cardinal Corporation's taxable income after these three items are taken into account? b. What is Cardinal Corporation's accumulated E \& P at the start of next year