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. Straight-line depreciation would have been $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 companys 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.

Federal income tax refund from last year of $41,900.

Nondeductible life insurance premium of $5,000.

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 $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. Lancos tax basis in the land was $10,800. Lug assumed an existing mortgage on the property of $21,200.

Required:

A) Compute Lancos current E&P.

B) Compute the amount of dividend income reported by Lug Nutt this year as a result of the distributions.

C) Compute Lancos accumulated E&P at the beginning of next year.