Lanco Corporation, an accrual-method corporation, reported taxable income of $2,350,000 this year. Included in the computation of taxable income were the following items:

• MACRS depreciation of $272,500. Straight-line depreciation would have been $171,000.
• A net capital loss carryover of $13,400 from last year.
• A net operating loss carryover of $26,000 from last year.
• $64,550 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 $8,500.
• Life insurance proceeds of $320,000.
• Excess current-year charitable contribution of $3,700 (to be carried over to next year).
• Tax-deferred gain of $29,100 on a like-kind exchange.
• Federal income tax refund from last year of $43,500.
• Nondeductible life insurance premium of $4,800.
• Nondeductible interest expense of $2,700 on a loan used to buy tax-exempt bonds.

Lanco's accumulated E&P at the beginning of the year was $3,010,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt:

• June 30: $58,500.
• September 30: Parcel of land with a fair market value of $78,250. Lancos tax basis in the land was $13,700. Lug assumed an existing mortgage on the property of $17,000.

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.