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 lands 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.

Compute Volunteers taxable income and federal income tax

Compute Volunteer's current E&P.

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

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

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