Lanco Corporation, an accrual-method corporation, reported taxable income of $1,600,000 this year. Included in the computation...

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Lanco Corporation, an accrual-method corporation, reported taxable income of $1,600,000 this year. Included in the computation of taxable income were the following items: MACRS depreciation of $226,000. Depreciation for earnings and profits purposes is $133,000. A net capital loss carryover of $14,000 from last year. A net operating loss carryover of $28,900 from last year. $77,550 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 $9,650. Life Insurance proceeds of $259,000. Excess current-year charitable contribution of $2,800 (to be carried over to next year). Tax-deferred gain of $21,000 on a like-kind exchange. Nondeductible life Insurance premium of $4,100. 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 $3,050,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi: June 30: $81,000. September 30: Parcel of land with a fair market value of $96,750. Lanco's adjusted tax basis in the land was $19,200. Luigi assumed an existing mortgage on the property of $21,600. Required: a. Compute Lanco's current E&P. b. Compute the amount of dividend Income reported by Luigi this year because of the distributions. c. Compute Lanco's accumulated E&P at the beginning of next year. a. Current E&P b. Dividend income $ 156,150 c. Accumulated E&P, beginning of next year Lanco Corporation, an accrual-method corporation, reported taxable income of $1,600,000 this year. Included in the computation of taxable income were the following items: MACRS depreciation of $226,000. Depreciation for earnings and profits purposes is $133,000. A net capital loss carryover of $14,000 from last year. A net operating loss carryover of $28,900 from last year. $77,550 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 $9,650. Life Insurance proceeds of $259,000. Excess current-year charitable contribution of $2,800 (to be carried over to next year). Tax-deferred gain of $21,000 on a like-kind exchange. Nondeductible life Insurance premium of $4,100. 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 $3,050,000. During the year, Lanco made the following distributions to its sole shareholder, Luigi: June 30: $81,000. September 30: Parcel of land with a fair market value of $96,750. Lanco's adjusted tax basis in the land was $19,200. Luigi assumed an existing mortgage on the property of $21,600. Required: a. Compute Lanco's current E&P. b. Compute the amount of dividend Income reported by Luigi this year because of the distributions. c. Compute Lanco's accumulated E&P at the beginning of next year. a. Current E&P b. Dividend income $ 156,150 c. Accumulated E&P, beginning of next year