Lanco Corporation, 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. Depreciation for earnings and profits purposes is $120,000. - 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 from the distribution of land to the company's sole shareholder (see 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. - Nondeductible life insurance premium of $3,500. - Nondeductible interest expense of $1,000 on a loan used to buy tax-exempt bonds. Lanco accrued and paid federal income taxes this year of $306,600. Lanco'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: - 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. Luigi assumed an existing mortgage on the property of $15,000. Required: a. Compute Lanco's current E\&P. b. Compute the amount of dividend income reported by Luigi this year because of the distributions. c. Compute Lanco's accumulated E\&P at the beginning of next year