Lanco Corporation, an accrual-method corporation, reported taxable income of $1,890,000 this year. Included in the computation of taxable income were the following items:

• MACRS depreciation of $259,000. Depreciation for earnings and profits purposes $134,000.
• A net capital loss carryover of $16,800 from last year.
• A net operating loss carryover of $27,300 from last year.
• $74,700 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 $9,600.
• Life insurance proceeds of $339,000.
• Excess current year charitable contribution of $5,000 (to be carried over to next year).
• Tax-deferred gain of $21,500 on a like-kind exchange.
• Nondeductible life insurance premium of $5,000.
• Nondeductible interest expense of $3,600 on a loan used to buy tax-exempt bonds.

Lanco paid federal income taxes this yearof $396,900. The company's accumulated E&P at the beginning of the year was $3,030,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt:

• June 30: $64,500.
• September 30: Parcel of land with a fair market value of $85,500. Lanco's tax basis in the land was $10,800. Lug assumed an existing mortgage on the property of $21,200.

Required:

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