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Volunteer Corporation reported taxable income of $$480,000$ from operations this year. During the year, the company made a distribution of land to its sole shareholder, Rocky Topp. The land's fair market value was $$88,000$ and its tax and E&P basis to Volunteer was $$27,500.$ Rocky assumed a mortgage attached to the land of $$17,600.$ The company had accumulated E&P of $$760,000$ at the beginning of the year.

a$.$ Compute Volunteer's taxable income and federal income tax.

Required information

Taxable income

Federal income tax

$5$

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