Corporation reported taxable income of $550,000 from operations for 2019. During the year, the company made a distribution of land to its sole shareholder , EJ. The land's fair market value was $67,000 and its tax and E&P basis to Elk was $ 30,000. EJ assume a mortgage attached to the land of $ 10,000 . The company had accumulated E&P of $800,000 at the beginning of the year

a . Compute Elk's total taxable income and federal income tax paid because of the distribution

b . Using your solution in a, compute Elk's current E &P for 2019 .

Please show step by step calculation.