Iris Corporation owns 30% of Fresia Corporation's stock, On November 15, Fresla Corporation, with current...
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Iris Corporation owns 30% of Fresia Corporation's stock, On November 15, Fresla 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 tris assumes. Click here to view the Dividend Received Deduction Table. a. How is Iris Corporation taxed on the distribution? Inis Corporation has dividend income of s has a basis of: X in the land. x. Iris Corporation Feethid Torec ly Want Although most corporate distribubons are cash, a corporation may distribute a property dividend for various reasons. The shareholders could want a particular property that is held by the corporation, Similarly, a corporation with low cash reserves may still want to distribute a olvidend to its shareholders. Property distributions have the same impact as distributions of cash except for the effects attributable to any difference between the basis and the fair market value of the distributed property. b. What is Fresia Corporation's E \& P after the distribution
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