Illini Corporation reported taxable income of $500,000 from operations for this year. During the year, the company made a distribution of an automobile to its sole shareholder, Carly Urbana. The autos fair market value was $30,000 and its tax basis to Illini was $0. The autos E&P basis was $15,000. Illini had accumulated E&P of $1,500,000.

a. Compute Illinis taxable income and federal income tax.

b. Compute Illini's current E&P.

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