Question 4:(20 marks) Lanco C orporation, an accrual-method corporation, reported taxable income of $1,460,000 this year. Included in the computation of taxable income were the following items: MACRS depreciation of $200,000. Straight-line depreci .A net capital loss carryover of $10,000 from last year. .A net operating loss carryover of $25,000 from last year. : , $65,000 capital gain frorn the distribution of land to the company's sole shareholder (see iation would have been $120,000. below). Not included in the computation of taxable income were the following items: Tax-exempt income of $5,000. Life insurance proceeds of $250,000. Excess current-year charitable contribution of $2,500 (to be carried over to next year). . Tax-deferred gain of $20,000 on a like-kind exchange. Federal income tax refund from last year of $35,000. .Nondeductible life insurance premium of $3,500. Nondeductible interest expense of $1,000 on a loan used to buy tax-exempt bonds. Lanco paid federal income taxes this year of $496,400. The company's accumulated E&P at the beginning of the year was $2,400,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt .June 30: $50,000. September 30: Parcel of land with a fair market value of $75,000. Lanco's tax basis in the land was $10,000. Lug assumed an existing mortgage on the property of $15,000. Required: 1. Compute Lanco's current E&P Lug Nutt this year as a result of the distributions 3. Compute Lanco's accumulated E&P at the beginning of next year