Rocky Corporation reported taxable income of $800,000 from operating for 2019. During the year, the company made a distribution of land to its sole shareholder, Sophie McCartney. The land's fair market value was $125,000 and its tax and E&P basis to Rocky was $65,000. Sophie assumed a mortgage attached to the land of $35,000.

A. Computer Rocky total taxable income and federal income tax paid because of the distribution.

b. Using your solution in A, Compute Rocky current E&P for 2019