Comprehensive Problem 18-69 (LO 18-1, LO 18-2, LO 18-3, LO 18-4, LO 18-5) (Algo) Lanco Corporation, an accrual-method corporation, reported taxable income of $1,930,000 this year. Included in the computation of taxable income were the following items: - MACRS depreciation of $325,000. Depreciation for earnings and profits purposes is $219,000. - A net capital loss carryover of $13,600 from last year. - A net operating loss carryover of $31,400 from last year. - $83,550 capital gain from the distribution of land to the company's sole shareholder (see below). Not included in the computation of taxable income were the following items: - Tax-exempt income of $6,850. - Life insurance proceeds of \$279,000. - Excess current-year charitable contribution of $5,400 (to be carried over to next year). - Tax-deferred gain of $21,700 on a like-kind exchange. - Nondeductible life insurance premium of \$5,900. - Nondeductible interest expense of $3,900 on a loan used to buy tax-exempt bonds. Lanco's accumulated E\&P at the beginning of the year was \$2,950,000: During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt: - June 30:\$80,500. - September 30: Parcel of land with a fair market value of \$93,750. Lanco's adjusted tax basis in the land was \$10,200. Lug assumed an existing mortgage on the property of $16,200. Required: a. Compute Lanco's current E\&P before the distributions. b. Compute the amount of dividend income reported by Lug Nutt this year as a result of the distributions. c. Compute Lanco's accumulated E\&P at the beginning of next year