Corporation reported taxable income of $550,000 from operations for 2019. During the year, the company made a distributi

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Corporation reported taxable income of $550,000 from operationsfor 2019. During the year, the company made a distribution of landto its sole shareholder , EJ. The land's fair market value was$67,000 and its tax and E&P basis to Elk was $ 30,000. EJassume a mortgage attached to the land of $ 10,000 . The companyhad accumulated E&P of $800,000 at the beginning of theyear
a . Compute Elk's total taxable income and federal incometax paid because of the distribution
b . Using your solution in a, compute Elk's current E &P for2019 .
Please show step by step calculation.