June $30$: $$55,500.$

September $30$: Parcel of land with a fair market value of $$92,500.$ Lanco's adjusted tax basis in the land was $$14,700.$

Luigi assumed an existing mortgage on the property of $$18,100.$

Required:

a$.$ 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.

Answer is complete but not entirely correct.