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. Depreciation for earnings and profits purposes is $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 companys 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.

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. Lancos adjusted tax basis in the land was $14,100. Lug assumed an existing mortgage on the property of $23,400.

Required:

Compute Lancos current E&P before the distributions.

Compute the amount of dividend income reported by Lug Nutt this year as a result of the distributions.

Compute Lancos accumulated E&P at the beginning of next year.