b) reduced / Increased

Problem 19-45 (LO. 5) Iris Corporation owns 30% of Fresia Corporation's stock. On November 15, Fresia Corporation, with current E & P of $320,000, distributes land (fair market value of $100,000; basis of $160,000) to Iris. The land is subject to a liability of $80,000, which Iris assumes. Click here to view the Dividend Received Deduction Table. a. How is Iris Corporation taxed on the distribution? Iris Corporation has dividend income of $ and a dividends received deduction of $ Iris Corporation has a basis of $ in the land. b. What is Fresia Corporation's E & P after the distribution? Fresia Corporation's E & P after the distribution is reduced by $