Lanco Corporation, an accrual-method corporation, reported taxable income of $2,380,000 this year. Included in the computation of taxable income were the following items:

• MACRS depreciation of $232,500. Depreciation for earnings and profits purposes is $152,000.
• A net capital loss carryover of $12,000 from last year.
• A net operating loss carryover of $28,600 from last year.
• $65,850 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 $7,150.
• Life insurance proceeds of $349,000.
• Excess current-year charitable contribution of $4,100 (to be carried over to next year).
• Tax-deferred gain of $23,100 on a like-kind exchange.
• Nondeductible life insurance premium of $4,000.
• Nondeductible interest expense of $1,200 on a loan used to buy tax-exempt bonds.

Lanco's accumulated E&P at the beginning of the year was $2,820,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt:

• June 30: $67,500.
• September 30: Parcel of land with a fair market value of $77,750. Lancos adjusted tax basis in the land was $11,900. Lug assumed an existing mortgage on the property of $24,000.

Required:

1. Compute Lancos current E&P before the distributions.
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.