Iris Corparation ovns 30\% of Fresia Corporation's stock. On November 15, Fresia Corporation, with current E 8. P of s320,000, distributes Jand (fair market value of $100,000; basis of $160,000 ) to tris. The land is subject to a liability of $80,000, which Iris assurnes. Click here to view the Dividend Received Dederction Fable. a. How is Iris Corporation taxed on the distribution? Iris Corporation has dividend income of 4 V. and a dividends recelved deduction of is has a basis of 4 in the land Fesdesa FCheck thy Wak Alahough-most corparate distributions are cash, a corporation may distribute a property dividend for vanious reasons. The shareholders could want a particular property that is held by the cocporation. Simitarly, a corpocation with lowr cash reserves may stals want to distribute a dividend to ite thareholders. Propecty distributions have the same impact as distributions of cash except for the effects attributable to any divforence between the basis and the fair market. vahue of the distributed property. b. What is fresia Cerporation's E is p after the dirtibution? X