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 $2,450,000 this year Included in the computation of taxable income were the following items: . MACRS depreciation of $275,000. Depreciation for earnings and profits purposes is $186,000. . A net capital loss carryover of $14,400 from last year. A net operating loss carryover of $28,700 from last year. $75.800 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 $7,850. Life insurance proceeds of $286,000. . Excess current-year charitable contribution of $3.400 (to be carried over to next year). . Tax-deferred gain of $23,000 on a like-kind exchange. Nondeductible life insurance premium of $5,400 Nondeductible interest expense of $3,000 on a loan used to buy tax-exempt bonds Lanco's accumulated E&P at the beginning of the year was $3,310,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi (Lug) Nutt: . June 30: $50,000. September 30: Parcel of land with a fair market value of $95,500. Lanco's adjusted tax basis in the land was $19,700. Lug assumed an existing mortgage on the property of $20,700. Required: a. Compute Lanco's current E&P. 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. a. Current E&P b. Dividend income c. Accumulated E&P, beginning of next year