Lanco Corporation, an accrual-method corporation, reported taxable income of $1,700,000 this year. Included in the computation of taxable income were the following items:

• MACRS depreciation of $250,500. Depreciation for earnings and profits purposes is $164,000.
• A net capital loss carryover of $16,700 from last year.
• A net operating loss carryover of $31,100 from last year.
• $67,200 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 $6,000.
• Life insurance proceeds of $344,000.
• Excess current-year charitable contribution of $4,800 (to be carried over to next year).
• Tax-deferred gain of $22,800 on a like-kind exchange.
• Nondeductible life insurance premium of $4,200.
• Nondeductible interest expense of $1,800 on a loan used to buy tax-exempt bonds.

Lanco accrued and paid federal income taxes this year of $306,600. Lancos accumulated E&P at the beginning of the year was $3,230,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt:

• June 30: $84,500.
• September 30: Parcel of land with a fair market value of $83,500. Lancos adjusted tax basis in the land was $16,300. Lug assumed an existing mortgage on the property of $19,200.

Required:

1. Compute Lancos current E&P.
2. Compute the amount of dividend income reported by Lug Nutt this year as a result of the distributions.
3. Compute Lancos accumulated E&P at the beginning of next year.