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Volunteer Corporation reported taxable income of $470,000 from operations this year. During the year, the company...

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Accounting

Volunteer Corporation reported taxable income of $470,000 fromoperations this year. During the year, the company made adistribution of land to its sole shareholder, Rocky Topp. Theland’s fair market value was $85,000 and its tax and E&P basisto Volunteer was $58,500. Rocky assumed a mortgage attached to theland of $17,000. Any gain from the distribution will be taxed at 21percent. The company had accumulated E&P of $780,000 at thebeginning of the year.

b. Compute Volunteer's current E&P.
c. Compute Volunteer’s accumulated E&P at thebeginning of next year.
d. What amount of dividend income does Rockyreport as a result of the distribution?
e. What is Rocky’s income tax basis in the landreceived from Volunteer?

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