42. Tiger 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, Mike Fairway. The land’s fair market value was $75,000 and its tax and E&P basis to Tiger was $125,000.

Mike 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 Tiger’s taxable income and federal income tax.

b. Compute Tiger’s current E&P.

c. Compute Tiger’s accumulated E&P at the beginning of next year.

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

e. What is Mike’s tax basis in the land he received from Tiger?