Ice Corporation reported taxable income of $600,000 and paid federal income tax of $126,000 in 2020. At the beginning of the year the corporation had positive accumulated E&P of $25,000. The corporation had the following items in connection with its 2020 activities:

• Net capital loss of $15,000 included in determining its taxable income.
• $35,000 dividends received deduction.
• MACRS depreciation totaled 117,500 while E&P depreciation totaled $85,000
• $50,000 excess charitable contribution above the 10% limit.
• $5,000 of tax-exempt interest income.
• $75,000 of nondeductible political contributions.

Lemonhead Corporation made a cash distribution of $750,000 to its sole shareholder on December 31, 2020.

Based on the above information, determine the following:

a. What is Lemonhead Corporations current year earnings and profits before taking into account the distribution at year end?

b. How much of the distribution to Lemonhead Corporations shareholders is treated as a dividend, if any?

c. Assume the sole shareholders tax basis in her stock equaled $50,000 prior to receiving the distribution. What is the shareholders basis in the stock after accounting for the distribution?

d. What is Lemonhead Corporations accumulated earnings and profits at the beginning of 2020?