Lanco Corporation, an accrual-method corporation, reported taxable income of $2.280,000 this year. Included in the computation of taxable income were the following items MACRS depreciation of S229,500. Straight-line depreciation would have been $144,000. A net capital loss carryover of $22,700 from last year A net operating loss carryover of $24.000 from last year. $78,150 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 $6,900. Life Insurance proceeds of $329,000 Excess current-year charitable contribution of $4,200 to be carried over to next year) Tax deferred gain of $29.800 on a like kind exchange Federal income tax refund from last year of $41,500 Nondeductible life insurance premium of $3,200. Nondeductible interest expense of $3,300 on a loan used to buy tax-exempt bonds Lanco's accumulated E&P at the beginning of the year was 53,350,000 During the year Lanco made the following distributions to its sole shareholder Luigi (Lug) Nutt June 30 $69,500 September 30 Parcel of land with a fait market value of $97750 Lanco's tax basis in the land was $19.600 Lug assumed an existing mortgage on the property of $17,200 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 Answer is complete but not entirely correct. b Current ERP Dividend income Accumulated E&P beginning of next year 2.737 400 $ 80.550 S 3.350.000 C