Illini Corporation reported taxable income of $500,000 from operations for this year. The company paid federal income taxes of $111,300 on this taxable income. During the year, the company made a distribution of an automobile to its sole shareholder, Carly Urbana. The auto's fair market value was $30,000, and its adjusted tax basis to Illini was $0. The auto's E&P adjusted tax basis was $15,000. Illini had accumulated E&P of $1,500,000.

a. Compute Illini's taxable income and federal income tax.

b. Compute Illini's current E&P. c. Compute Illini's accumulated E&P at the beginning of next year.

d. What amount of dividend income does Carly report as a result of the distribution?

e. What is Carly's tax basis in the auto she received from Illini?