Tiger Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distribution of land to its sole shareholder, Mike Fairway. The lands fair market value was $75,000 and its tax and E&P basis to Tiger was $125,000. Mike assumed a mortgage attached to the land of $15,000. Any gain from the distribution will be taxed at 21 percent. The company had accumulated E&P of $750,000 at the beginning of the year.

Total taxable income was $500,000

Federal income tax was $105,000

Current E&P was $395,000

c. Compute Tigers accumulated E&P at the beginning of next year.

Accumulated E&P at the beginning of next year

$