Lanco Corporation, an accrual-method corporation, reported taxable income of $2,230,000 this year. Included in the computation of taxable income were the following items:

• MACRS depreciation of $289,500. Straight-line depreciation would have been $198,000.
• A net capital loss carryover of $16,100 from last year.
• A net operating loss carryover of $32,500 from last year.
• $75,000 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 $7,500.
• Life insurance proceeds of $330,000.
• Excess current-year charitable contribution of $2,700 (to be carried over to next year).
• Tax-deferred gain of $20,300 on a like-kind exchange.
• Federal income tax refund from last year of $35,800.
• Nondeductible life insurance premium of $4,500.
• 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 $2,840,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt:

• June 30: $65,000.
• September 30: Parcel of land with a fair market value of $88,500. Lancos tax basis in the land was $13,500. Lug assumed an existing mortgage on the property of $16,800.

Required:

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