Lanco Corporation,

an accrual-method corporation, reported taxable income of $1,600,000 this year. Included in the computation of taxable income were the following items: MACRS depreciation of $226,000. Straight-line depreciation would have been $133,000. A net capital loss carryover of $14,000 from last year. A net operating loss carryover of $28,900 from last year. $77,550 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 $9,650. Life insurance proceeds of $259,000. Excess current-year charitable contribution of $2,800 (to be carried over to next year). Tax-deferred gain of $21,000 on a like-kind exchange. Federal income tax refund from last year of $39,800. Nondeductible life insurance premium of $4,100. Nondeductible interest expense of $3,900 on a loan used to buy tax-exempt bonds. Lanco's accumulated E&P at the beginning of the year was $3,050,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt: June 30: $81,000. September 30: Parcel of land with a fair market value of $96,750. Lancos tax basis in the land was $19,200. Lug assumed an existing mortgage on the property of $21,600. Required: Compute Lancos current E&P. 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.