Lily Corporation owns 30% of Shelley Corporations stock. On December 31, Shelley Corporation, with current E & P of $220,000, distributes land (fair market value of $100,000; basis of $125,000)to Iris. The land is subject to a liability of $75,000, which Lily assumes.

What is the amount of the dividend (without considering the dividend received deduction) that Shelley Corporation must pay tax on?

Secondly, what is Lily Corporations ending E&P after the distribution?