Volunteer Corporation reported taxable income of $500,000 from operations for 2010. The company paid federal income taxes of $170,000 on this taxable income. During the year, the company made a distribution of land to its sole shareholder. Rocky Topp. The land's fair market value was $75,0100 and its tax and E&P basis to Volunteer was $25,000. Rocky assumed a mortgage

Volunteer Corporation reported taxable income of $500,000 from operations for 2010. The company paid federal income taxes of $170,000 on this taxable income. During the year, the company made a distribution of land to its sole shareholder. Rocky Topp. The land's fair market value was $75,0100 and its tax and E&P basis to Volunteer was $25,000. Rocky assumed a mortgage attached to the land of $15,000. Any gain from the distribution will be taxed at 34 percent. 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 paid as a result of the distribution.

D. Compute Volunteer's current E&P for 2010. c. Compute Volunteer's accumulated E&P at the beginning of 2011. a. what amount of dividend income does Rocky report as a result of the distribution? e. what is Rocky's income tax basis in the land received from Volunteer?

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