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inco Corporation, an accrual-method corporation, reported taxable income of $2,230,000 this year. Included in the computation of xable income were the following items: - MACRS depreclation of $289,500. Depreciation for earnings and profits purposes Is $198,000. - A net capital loss cartyover of $16,100 from last year. - A net operating loss carryover of $32,500 from last year. - $75,000 capital gain from the distribution of land to the company's sole shareholder (see below). Not Included in the computation of taxable Income were the following items: - Tax-exempt income of $7.500 - Life insurance proceeds of $330,000. - Excess current-year charitable contribution of $2,700 (to be carrled over to next year). - Tax-deferred gain of $20,300 on a like-kind exchange. - Nondeductible life insurance premlum of $4,500. - Nondeductible Interest expense of $3,600 on a loan used to buy tax-exempt bonds. Lanco's accumulated E\&P at the beginning of the year was $2,840,000. During the year, Lanco made the following distributions to its sole shareholder. Lulgl: - June 30: $65,000 - September 30: Parcel of land with a falr market value of $88,500. Lanco's adjusted tax basis in the land was $13,500. Lulg! assumed an existing mortgage on the property of $16,800. Required: 0. Compute Lanco's current E\&P b. Compute the amount of dividend income reported by Luigi this year because of the distributions. c. Compute Lanco's accumulated E\&P at the beginning of next year. inco Corporation, an accrual-method corporation, reported taxable income of $2,230,000 this year. Included in the computation of xable income were the following items: - MACRS depreclation of $289,500. Depreciation for earnings and profits purposes Is $198,000. - A net capital loss cartyover of $16,100 from last year. - A net operating loss carryover of $32,500 from last year. - $75,000 capital gain from the distribution of land to the company's sole shareholder (see below). Not Included in the computation of taxable Income were the following items: - Tax-exempt income of $7.500 - Life insurance proceeds of $330,000. - Excess current-year charitable contribution of $2,700 (to be carrled over to next year). - Tax-deferred gain of $20,300 on a like-kind exchange. - Nondeductible life insurance premlum of $4,500. - Nondeductible Interest expense of $3,600 on a loan used to buy tax-exempt bonds. Lanco's accumulated E\&P at the beginning of the year was $2,840,000. During the year, Lanco made the following distributions to its sole shareholder. Lulgl: - June 30: $65,000 - September 30: Parcel of land with a falr market value of $88,500. Lanco's adjusted tax basis in the land was $13,500. Lulg! assumed an existing mortgage on the property of $16,800. Required: 0. Compute Lanco's current E\&P b. Compute the amount of dividend income reported by Luigi this year because of the distributions. c. Compute Lanco's accumulated E\&P at the beginning of next year