Taxable Income E & P Increase Transaction increase (Decrease) (Decrease) a. Realized gain of $80,000 on involuntary conversion of building ($10,000 of gain is recognized) b. Sale of equipment to unrelated third party for $240,000; basis is $120,000(no election out of installment method; no payments are received in the current year). c. Dividends of $20,000 received from 5% owned corporation, together with dividends received deduction(assume taxable income limit does not apply)