Volunteer Corporation reported taxable income of $505,000 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 $108,000 and its tax and E&P basis to Volunteer was $44,500. Rocky assumed a mortgage attached to the land of $21,600. The company had accumulated E&P of $838,000 at the beginning of the year.

a. Compute Volunteers taxable income and federal income tax.

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

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

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