Fargo Corporation holds $5,000,000 in accumulated E & P. It distributes to Leilei, one of its shareholders, land worth $1,401,600; basis of the land to Fargo is $1,168,000.

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 $__________.