please answer both

Illini Corporation reported taxable income of $475,000 from operations for this year. During the year, the company made a distribution of an automobile to its sole shareholder, Carly Urbana. The auto's fair market value was $20,000 and its tax basis to Illini was $0. The auto's E\&P basis was $15,000. Any gain from the distribution will be taxed at 21 percent. Illini had accumulated E\&P of $1,500,000. What is Illini's current E\&P? QUESTION 10 time of the distribution was $2,000,000. By what amount does EG reduce its total E\&P as a result of the redemption