tter Corporation reported taxable income of $420,000 from operations for 20X3. The company paid federal income taxes of $137,500 on this taxable income. During the year, the ompany made a distribution of land to its sole shareholder, Emmet Jugg. The land's fair, market value was $54,000 and its tax and E&P adjusted tax basis to Otter was $32,000. Emmet ssumed a mortgage attached to the land of $10,200. The company had accumulated E&P of $920,000 at the beginning of the year. Compute: Otter's total taxable income and federal income tax paid because of the distribution (assume a tax rate of 21 percent). Using your solution, compute: . Otter's current E&P for 20X3