Lanco Corporation, an accrual-method corporation, reported taxable income of $2,040,000 this year. Included in the computation of taxable income were the following items: MACRS depreciation of $318,000. Depreciation for earnings and profits purposes is $203,000. A net capital loss carryover of $19,100 from last year. A net operating loss carryover of $34,900 from last year. $69,800 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: nces Tax-exempt Income of $8,200. . Life insurance proceeds of $336,000 Excess current-year charitable contribution of $3,800 (to be carried over to next year). Tox-deferred gain of $23.800 on a like kind exchange. Nondeductible life insurance premium of $3,700. Nondeductible interest expense of $1,200 on a loan used to buy tax-exempt bonds Lanco accrued and pold federal income taxes this year of $306,600. Lanco's accumulated E&P at the beginning of the year was $2,450,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt: June 30: $88,000 September 30: Parcel of land with a fair market value of $80,500. Lanco's adjusted tax basis in the land was $10,700 Lug assumed an existing mortgage on the property of $18,500 Required: a. Compute Lonco'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 Lonco's accumulated E&P at the beginning of next year, . Nondeductible life insurance premium of $3,700. Nondeductible interest expense of $1,200 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 $2.450,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt: June 30: $88,000 . September 30: Parcel of land with a fair market value of $80,500. Lanco's adjusted tax basis in the land was $10,700. Lug assumed an existing mortgage on the property of $18,500. 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 Lonco's accumulated E&P at the beginning of next year, a. Current ERP b. Dividend income c. Accumulated E&P, beginning of next year