Volunteer corporation reported taxable income of $500,000 from operations for 2010. the company paid federal incometaxes of $170,000 on this taxable income. during the year, the company made a distribution of land to its sole shareholder, rocky topp. the land’s fair market value was $75,000 and its tax and e& p basis to volunteer was $25,000. rocky assumeda mortgage attached to the land of $15,000. any gain from the distribution will be taxed at 34 percent the company hadaccumulated e843 of $750,000 at the beginning of the year. a. compute volunteer‘s total taxable income and federal income tax paid as a result of the distribution. b. compute volunteer‘s current e& p for 2010.c. compute volunteer’s accumulated e& p at the beginning of 2011.d. what amount of dividend income does rocky report as a result of the distribution? e. what is rocky's income tax basis in the land received from volunteer?

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.