Lanco Corporation, an accrual-method corporation, reported taxable income of $2,430,000 this year. Included in the computation of taxable income were the following items:

• MACRS depreciation of $218,500. Straight-line depreciation would have been $125,000.
• A net capital loss carryover of $12,900 from last year.
• A net operating loss carryover of $27,800 from last year.
• $74,650 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 $8,400.
• Life insurance proceeds of $254,000.
• Excess current-year charitable contribution of $3,200 (to be carried over to next year).
• Tax-deferred gain of $22,600 on a like-kind exchange.
• Federal income tax refund from last year of $35,400.
• Nondeductible life insurance premium of $4,600.
• Nondeductible interest expense of $3,000 on a loan used to buy tax-exempt bonds.

Lanco's accumulated E&P at the beginning of the year was $3,280,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt:

• June 30: $90,500.
• September 30: Parcel of land with a fair market value of $88,750. Lanco's tax basis in the land was $14,100. Lug assumed an existing mortgage on the property of $23,400.

Required:

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