Volunteer Corporation reported taxable income of $430,000 from operations this year. The company paid federal income taxes of $90,300 on this taxable income. During the year, the company made a distribution of land to its sole shareholder, Rocky Topp. The lands fair market value was $124,500 and its tax and E&P basis to Volunteer was $35,000. Rocky assumed a mortgage attached to the land of $24,900. The company had accumulated E&P of $798,000 at the beginning of the year.

a. Compute Volunteers taxable income and federal income tax.

Taxable income
Federal Income Tax

b. Compute Volunteer's current E&P

Current E&P

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

Accumulated E&P at the beginning of next year

d. What amount of dividend income does Rocky report as a result of the distribution?

Dividend income

e. What is Rockys income tax basis in the land received from Volunteer?

Income tax basis