Lanco Corporation, an accrual-method corporation, reported taxable income of $1,900,000 this year. Included in the computation of taxable income were the following items: MACRS depreciation of $306,500. Depreciation for earnings and profits purposes is $218,000. A net capital loss carryover of $15,600 from last year. . A net operating loss carryover of $34,200 from last year. $76,350 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 $6,500. Life insurance proceeds of $260,000. Excess current-year charitable contribution of $5,300 (to be carried over to next year). Tax-deferred gain of $28,100 on a like-kind exchange. Nondeductible life insurance premium of $3,400. Nondeductible interest expense of $2,700 on a loan used to buy tax-exempt bonds. Lanco accrued and paid federal income taxes this year of $306,600. Lanco's accumulated E&P at the beginning of the year was $2,750,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt: June 30: $78,500. September 30: Parcel of land with a fair market value of $91,750. Lanco's adjusted tax basis in the land was $15,400. Lug assumed an existing mortgage on the property of $19,400. 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.