Lanco Corporation, an accrual-method corporation, reported taxable income of $1,500,000 this year. Included in the computation of taxable income were the following items:

MACRS depreciation of $253,500. Depreciation for earnings and profits purposes is $143,000.

A net capital loss carryover of $20,600 from last year.

A net operating loss carryover of $33,100 from last year.

$84,400 capital gain from the distribution of land to the companys sole shareholder (see below).

Not included in the computation of taxable income were the following items:

Tax-exempt income of $6,400.

Life insurance proceeds of $337,000.

Excess current-year charitable contribution of $5,100 (to be carried over to next year).

Tax-deferred gain of $21,900 on a like-kind exchange.

Nondeductible life insurance premium of $3,600.

Nondeductible interest expense of $2,700 on a loan used to buy tax-exempt bonds.

Lanco's accumulated E&P at the beginning of the year was $3,160,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt:

June 30: $86,500.

September 30: Parcel of land with a fair market value of $96,000. Lancos adjusted tax basis in the land was $11,600. Lug assumed an existing mortgage on the property of $20,800.

Required:

Compute Lancos current E&P before the distributions.

Compute the amount of dividend income reported by Lug Nutt this year as a result of the distributions.

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