Lanco Corporation, an accrual-method corporation, reported taxable income of $1,720,000 this year and paid Federal income tax of $361,200. Included in the computation of taxable income were the following items:

• MACRS depreciation of $253,000. Depreciation for earnings and profits purposes is $124,000.
• A net capital loss carryover of $13,700 from last year.
• A net operating loss carryover of $31,000 from last year.
• $76,750 capital gain from the distribution of land to the company's sole shareholder (see below).

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

• Tax-exempt income of $8,600.
• Life insurance proceeds of $267,000.
• Excess current-year charitable contribution of $2,300 (to be carried over to next year).
• Tax-deferred gain of $21,300 on a like-kind exchange.
• Nondeductible life insurance premium of $4,700.
• Nondeductible interest expense of $3,600 on a loan used to buy tax-exempt bonds.

Lanco's accumulated E&P at the beginning of the year was $2,520,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi:

• June 30: $60,000.
• September 30: Parcel of land with a fair market value of $95,250. Lanco's adjusted tax basis in the land was $18,500. Luigi assumed an existing mortgage on the property of $16,900.

Required:

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