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. Depreciation for earnings and profits purposes is $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.
• 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:

• June 30: $81,000.
• September 30: Parcel of land with a fair market value of $96,750. Lancos adjusted tax basis in the land was $19,200. Luigi assumed an existing mortgage on the property of $21,600.

Required:

1. Compute Lancos current E&P.
2. Compute the amount of dividend income reported by Luigi this year because of the distributions.
3. Compute Lancos accumulated E&P at the beginning of next year.