Volunteer 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, Rocky Topp. The land's fair market value was $75,000 and its tax and E&P basis to Volunteer was $25,000. Rocky assumed a mortgage attached to the land of $15,000. The company had accumulated E&P of $750,000 at the beginning of the year.

a.Compute Volunteer's total taxable income and federal income tax.

b.Compute Volunteer's current E&P.

c.Compute Volunteer's accumulated E&P at the beginning of next year.

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