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 (GAIN OR LOSS) of $__________. The net (INCREASE OR DECREASE) to Fargo's E & P is $________. The shareholder has dividend income of $________