Lanco Corporation, an accrual-method corporation, reported taxable income of $1,530,000 this year. Included in the computation of taxable income were the following items:

MACRS depreciation of $230,500. Straight-line depreciation would have been $128,000.

A net capital loss carryover of $20,500 from last year.

A net operating loss carryover of $27,000 from last year.

$63,850 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 $6,700.

Life insurance proceeds of $276,000.

Excess current year charitable contribution of $2,400 (to be carried over to next year).

Tax-deferred gain of $23,300 on a like-kind exchange.

Federal income tax refund from last year of $43,000.

Nondeductible life insurance premium of $3,900.

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

Lanco paid federal income taxes this year of $520,200. The companys accumulated E&P at the beginning of the year was $3,090,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt:

June 30: $86,000.

September 30: Parcel of land with a fair market value of $78,750. Lancos tax basis in the land was $14,900. Lug assumed an existing mortgage on the property of $23,400.

Required:

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.