Lanco Corporation, an accrual-method corporation, reported taxable income of $1,720,000 this year. Included in the computation of taxable income were the following items: . MACRS depreciation of $253,000. Straight-line depreciation would have been $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. Federal income tax refund from last year of $40,800. 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 (Lug) Nutt: . . June 30: $60,000. September 30: Parcel of land with a fair market value of $95,250. Lanco's tax basis in the land was $18,500. Lug assumed an existing mortgage on the property of $16,900. Required: a. Compute Lanco's current E&P. b. Compute the amount of dividend income reported by Lug Nutt this year as a result of the distributions. c. Compute Lanco's accumulated E&P at the beginning of next year. a. Current E&P b. Dividend income Accumulated E&P, beginning of next year