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Otter Corporation reported taxable income of $480,000 from operations for 20X3. The company paid federal income taxes of $139,000 on this taxable income. During the

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Otter Corporation reported taxable income of $480,000 from operations for 20X3. The company paid federal income taxes of $139,000 on this taxable income. During the year, the company made a distribution of land to its sole shareholder, Emmet Jugg. The land's fair market value was $66,000 and its tax and E&P basis to Otter was $38,000. Emmet assumed a mortgage attached to the land of $10,800. The company had accumulated E&P of $980,000 at the beginning of the year. Compute Otter's total taxable income and federal income tax paid because of the distribution (assume a tax rate of 21%). Using your solution, compute Otter's current E&P for 20X3

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