Exercise 13-4 (Algorithmic) (LO. 5) Fargo Corporation holds $5,000,000 in accumulated E & P. It distributes to Leilei, one of its shareholders, land worth $1,243,200; basis of the land to Fargo is $1,036,000. Determine the Federal income tax consequences of the distribution to Fargo.. Fargo Corporation recognizes a of $ The shareholder has dividend income of $ The net to Fargo's E & P is