Gustav Corporation owns 90% of Hans Corporation's stock. On April  3, Hans Corporation, with current E & P of $680,000, distributes land (fair market value of $85,000; basis of $140,000) to Gustav. The land is subject to a liability of $55,000, which Gustav assumes.

Click here to view the Dividend Received Deduction Table.

a. Gustav Corporation has dividend income of $ and a dividends received deduction of $.

b. Hans Corporation's E & P after the distribution is reduced