Iris Corporation owns 30% of Fresia Corporation's stock. On November 15, Fresia Corporation, with current E & P of $320,000, distributes land (fair market value of $100,000; basis of $160,000) to Iris. The land is subject to a liability of $80,000, which Iris assumes.

Dividends Received Deduction Table

Percentage of Ownership by Corporate Shareholder	Deduction Percentage
Less than 20%	50%
20% or more (but less than 80%)	65%
80% or more	100%

a. How is Iris Corporation taxed on the distribution?

Iris Corporation has dividend income of $_______ and a dividends received deduction of $________. Iris Corporation has a basis of $ in the land.

b. What is Fresia Corporations E & P after the distribution? $________.